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Fallen 'Wall Street Warrior' Gets Prison for Ponzi Scheme

By DNAinfo Staff on March 23, 2011 3:09pm

Guy De Chimay is arraigned on fraud after a million dollar Ponzi scheme in Manhattan Criminal Court.
Guy De Chimay is arraigned on fraud after a million dollar Ponzi scheme in Manhattan Criminal Court.
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DNAinfo/Josh Williams

By Shayna Jacobs

DNAinfo Reporter/Producer

MANHATTAN SUPREME COURT — A former Wall Street broker was sentenced to three to nine years in prison for swindling investors who believed he was earning money for the Belgian royal family that shares his last name.

Guy De Chimay, 47, once highlighted on reality TV show "Wall Street Warriors," went from successful money-maker to admitted criminal when he pleaded guilty to grand larceny, securities fraud and other charges on Feb. 2.

According to prosecutors, De Chimay stole more than $7 million from investors and spent the dough on a Hamptons rental home, cars, his mortgage and other personal expenses.

De Chimay confessed he fraudulently told his investors he was Belgian royalty and said he was helping the family profit through investments. He would then tell potential "clients" that he could help them make money on those same investments.

He pocketed some of their money and lost $3.5 million of it in risky investments, prosecutors said.

In fact, he was a distant blood relative to the De Chimay family of Belgium, but he'd never had any contact with them or access to their finances.

The former broker even showed investors false return statements to convince them their investments were secure, prosecutors said.

De Chimay was promised Wednesday's sentence in exchange for a guilty plea and an agreement to eventually pay back more than $6 million upon his release.

About 10 percent of his yearly earnings will go back to the victims upon his return.

"He has no money," said his attorney, Martin Adelman, who added that De Chimay is "extremely remorseful."

Despite the restitution agreement, De Chimay may still be sued by the deceived investors, Adelman said.