Businessman Pleads Guilty To Fraud
A businessman who once tried to buy the New York Post pleaded guilty Thursday to charges he inflated his bill collection company’s assets to swindle hundreds of investors nationwide.
Steven Hoffenberg was accused of defrauding investors of $460 million from 1987 to 1993. Prosecutors say he misrepresented the financial condition of Towers Financial Corp., his former bill collection company, so he could sell $250 million worth of the company’s notes and $210 million of its bonds.
Hoffenberg’s bid to buy the Post in early 1993 was blocked by an SEC lawsuit.