The Big Bet Part 2: Indictment shows horse hospital near Belmont Park was part of alleged Ponzi operation

A shuttered horse hospital near Belmont Park is at the center of an alleged Ponzi scheme investigation. A Long Island-based group investors, led by horse

Investigators have accused James Tagliaferri of using a Long Island-based group of investors as part of a pyramid operation.

Investigators have accused James Tagliaferri of using a Long Island-based group of investors as part of a pyramid operation. (10/18/13)

ELMONT - A shuttered horse hospital near Belmont Park is at the center of an alleged Ponzi scheme investigation.

A Long Island-based group investors, led by horse owner Michael Iavarone, received a 10-year tax break for a new equine care facility near the racetrack. The break, which came from the Hempstead Industrial Development Agency, resulted in more than $500,000 in lost tax revenues, especially after the hospital was shut down.

However, a federal indictment shows the financial source funding the project was not Iavarone, but rather one of his associates. In February of this year, investigators accused that associate, James Tagliaferri, of using the group as part of a pyramid operation to defraud investors.

An attorney representing a Dix Hills investor who lost $2 million in the apparent scam has filed a civil suit against Tagliaferri and Iavarrone.

Tagliaferri has pleaded not guilty and is awaiting trial.

Meanwhile, critics say Hempstead officials should have done a better job of checking the horse firm's financial backers before giving the project such a large tax break.

advertisement | advertise on News 12

Top 5 Must See

A pedestrian was struck by a car and 1 Pedestrian struck by car, killed in Ronkonkoma
Police say Antonio Smith shot another man several 2 Freeport man facing charges in January shooting
Anyone with information is urged to call Nassau 3 Police: Men break into home, rob woman in Roslyn Heights
Police say 14-year-old Nicolo Signore was hit while 4 Teen fatally struck by car in Miller Place
A Queens man died Friday after a car 5 Driver strikes, kills pedestrian in Carle Place

advertisement | advertise on News 12

More News

Iavarone's firm asked the Hempstead Industrial Development Agency The Big Bet Part 1: Investors under fire for horse hospital

A group of Long Island investors is under fire after sinking more than $500,000 into

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE