No word from Richard Piccoli, both inside and outside Federal court where he appeared twice today. He is facing both a criminal and civil suit, and has hired to well known attorneys for his defense, Richard Sullivan and Joel Daniels. The government says he defrauded investors, by telling his alleged investors he was using their money for residential real estate portfolios, when in reality, prosecutors say he never invested any of it. The attorney for the SEC says it is a classic ponzi scheme.

"Our analysis of our records show there was no investment activity at all. Instead he was just using the new money that came in to pay off new investors," said David Stoelting, of the SEC.

"Everybody should take and deep breath and we will find out where the money is, who is owed money, and do our best to protect all of these investors," said defense attorney Richard Sullivan.

Piccoli's company allegedly ran adds in catholic newspapers locally and nationally, and is accused of defrauding catholic investors, including priests. The government saying in the last few years Piccoli's company has taken in 17 million in investments.

"At this point we are working with the number of 250 investors. To the extent the are not fully paid back they will be a victim in this case," said Assistant US Attorney Gretchen Wylegala.

"We are going to look for a reasonable resolution, but the bottom line here is to make sure the investors are taken care of, and that is what Dick Sullivan and I plan to do," said Defense attorney Joel Daniels. "Is there enough money for that?, " asked Eyewitnews News. "We hope so," added Daniels.