"Newman is said to have lured investors by misrepresenting his own ability to pay back funds, [...] He then used the funds to pad his own finances or pay back earlier investors."

What? Why would you pay investors #1 back if you were planning to screw investors #2? Or was he planning to just take ever bigger gambles?

His initial investors were likely complicit or he wanted the relationship to persist for future deals.

Even if he's innocent, I found his lawyer's statement quirky:

  "All of his business ventures have been legitimate and well-intentioned. 
  While his ventures were not always as successful as he hoped they would 
  be, he never did anything to justify the over-reaching charges issued against 
  him today.["]

I can't envision how this statement helps him.