Karen Adams Lampert Ponzi Scheme Steven Lampert Ponzi Scheme taking money from friends and family New York, New York

Former NY Couple Arrested For Bilking Friends

Cops: 'Glamorous Grifters' Sold Millions Of Dollars Of Worthless Stock Certificates To Friends

CLARKSTOWN, N.Y. (CBS) ?


Before the bank seized their luxury home and fancy cars eight months ago, Karen and Steven Lampert certainly looked the part of successful suburbanites.

Police say they were actually "glamorous grifters" who stole millions.

One former neighbor says she isn't surprised.

"Just from things we heard people say, they weren't the most upstanding neighbors," Nadine Reicher said. "And any dealings we had with them were just unpleasant."

Two years ago, the Lamperts ran an anti-aging center at a medical office. Karen Lampert, youthful in appearance even at age 62, was a walking advertisement for their services.

Then the Albany District Attorney charged the Lamperts with submitting false prescriptions for steroids. The charges were eventually dropped, but the anti-aging center went bust.

Investigators say after the steroid case, the Lamperts were increasingly desperate to maintain their high-flying lifestyle and that's when they allegedly decided to rip off their friends.

Police say the Lamperts sold people in their social circle worthless stock certificates for defunct companies.

"One of the losses is in the range of $500,000 to $1 million," Sergeant Harry Baumann, of the Clarkstown Police Department, said.

Police say friends and associates gave the Lamperts as much as $3 million, taken in by the couple's aura of wealth and success.

"Look at a similar case with Madoff he had an outstanding image of high-end houses, cars and everything else," Sgt. Baumann said.

The Lamperts had recently been living in Pacific Palisades, a ritzy section of Los Angeles. Steve Lampert was arrested there Thursday.

"I hear it was a high-end condominium, and he was driving a high-end car," Sgt. Baumann said.

Police say the Lamperts were living a lifestyle funded by fraud.

Karen Lampert was arrested this weekend as she visited family on Long Island. She's held on $100,000 bond.

Steven Lampert is expected to be extradited from California later this week.