$18 million dollars down the drain and the man behind it is no other than a Long Island investor advisor , whose name is James Peister ! If convicted he will face upward of 20 years of federal time -- it is believed that the scheme has been running for a span of nine years from 2000- 2009 . It appears that the plan shattered within the wake of the 2008 collapse of the economy . The scheme afforded Peister a lavish lifestyle where he was able to reside in an eight room manison - style home within the St.James county within Long Island . Monday he plead not guilty to several counts of faund : including wire , security and mail fraud. On his behalf his lawyer stated that he did not have the means needed to cover his $1.5 million set bail after ripping of several investors for almost a decade.