From the best seat in the house to the big house: Ponzi artist to plead guity

Nevin Shapiro, the former owner of Capitol Investments USA Inc. accused of leading an $880 million Ponzi scheme, is to plead guilty, court papers showed.

Shapiro, 41, of Miami Beach, Florida, was arrested April 21 arrest on charges of defrauding more than 60 investors in his bogus wholesale grocery distribution business. Prosecutors said he used $35 million of the proceeds for illegal gambling debts, a yacht and luxury car, mortgage payments, and floor seats to Miami Heat basketball games.

Shapiro is scheduled for a “plea agreement hearing” on Sept. 15 in federal court in Newark, New Jersey, where he was indicted, according to an Aug. 20 court docket entry. The entry doesn’t specify what charges Shapiro will admit.

Rebekah Carmichael, a spokeswoman for U.S. Attorney Paul Fishman, declined to comment. Shapiro’s attorney Maria E. Perez didn’t immediately return a call seeking comment.

Shapiro was accused in a July 14 indictment of conspiracy, securities fraud, two counts of wire fraud and two counts of money laundering. The securities and wire fraud counts each carry prison terms of as many as 20 years. Shapiro has been held since his arrest with bail set at $10 million.

Shapiro and Capitol filed for bankruptcy in November, prosecutors said, owing investors more than $100 million.