Kenzie Funds Ponzi: Daniel Spitzer Got 25 Years and Alfred Gerebizza 20 for $105 Million Forex Fraud

Case from 2015–2017 (U.S. Attorney's Office release: Jan. 29, 2015; later developments are from court records and other sources cited below). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Daniel Spitzer, a North Barrington man formerly of the U.S. Virgin Islands, was sentenced on Jan. 29, 2015, to 25 years in federal prison for a Ponzi scheme that raised about $105 million from 455 investors in 12 funds known as the "Kenzie Funds," the U.S. Attorney's Office for the Northern District of Illinois announced [1]. At least 279 victims, many of them elderly, lost $33.98 million.

Co-defendant outcome: Alfred Gerebizza, convicted at trial, was later sentenced to 240 months in prison and held jointly liable for the $33,988,000 in restitution. The Seventh Circuit affirmed in December 2017 [2].

How the scheme worked

According to court records cited by prosecutors and the Seventh Circuit [1] [2]:

1. The funds: Through entities including Kenzie Financial Management, Kenzie Services LLC, Draseena Funds Group Corp., DN Management Co. and Nerium Management Co., Spitzer controlled 12 funds sold to the public as membership interests and limited partnerships.
2. The pitch: Investors were told the money would be used mainly for foreign currency trading, that the funds had never lost money, and that they had returned 4.52% to 13.54% a year over five years.
3. The reality: Bank records showed a total net return of less than 1% over that period. Money from all 12 funds was commingled, a large share misappropriated, and less than a third of the $105 million invested. About $71 million went to Ponzi payments to earlier investors, the appeals court said.
4. The $250 million claim: Investors were told that as of June 30, 2009, the funds were worth about $250 million; in September 2009 they held about $4.1 million in domestic bank accounts.

The scheme ran from late 2004 to early 2010, prosecutors said. Investors reported it to the SEC after redemptions stalled in 2009, according to the Seventh Circuit.

The people sentenced

Daniel Spitzer, 55, North Barrington, Ill.

• Pleaded guilty in July 2014, on the day his trial was to start, to 10 counts of mail fraud.
• Sentenced Jan. 29, 2015, by U.S. District Judge James Zagel to 25 years in prison and $33.98 million restitution [1].

Alfred Gerebizza, 59, formerly of Crystal Lake and Palm Beach Gardens, Fla. — Draseena secretary and director, Kenzie sales agent and self-described trader.

• Convicted by a jury in July 2014 of 10 counts of mail fraud and six counts of income tax fraud; he declined to attend his own trial, according to the Seventh Circuit.
• Sentenced to 240 months, below a guidelines range of life; restitution of $33,988,000, joint with Spitzer; affirmed Dec. 21, 2017 [2].

Red flags

• "Never lost money" claims about currency trading.
• Several funds with different "risk levels" run by the same people with no independent custodian.
• Stalled redemptions with excuses about paperwork or timing.

What to do if you're targeted

1. Check forex and commodity pools through the NFA's BASIC database and the CFTC.
2. Insist on statements from an independent custodian and an audited fund.
3. Report fraud to the SEC at sec.gov/tcr or the CFTC at cftc.gov/complaint.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Daniel Spitzer	N.D. Ill. (Judge Zagel), 10 CR 651	Pleaded guilty July 2014; sentenced Jan. 29, 2015, to 25 years; $33.98M restitution	[1]
Alfred Gerebizza	N.D. Ill.; 7th Cir. No. 16-1725	Convicted at trial July 2014; sentenced to 240 months; affirmed Dec. 21, 2017	[2]

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Suburban Man Sentenced To 25 Years In Federal Prison For Cheating 455 Investors Of $105 Million And Causing $34 Million Loss," Jan. 29, 2015. https://www.justice.gov/usao-ndil/pr/suburban-man-sentenced-25-years-federal-prison-cheating-455-investors-105-million-and
2. U.S. Court of Appeals for the Seventh Circuit, United States v. Alfred Gerebizza, No. 16-1725, Dec. 21, 2017 (nonprecedential). https://law.counselstack.com/opinion/united-states-v-alfred-gerebizza-ca7-2017

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