Jan. 8 (Bloomberg) -- U.S. regulators sued an investment adviser and his Williamsville, New York-based firm, claiming they operated a Ponzi scheme targeting elderly investors and members of the Catholic community.

Richard Piccoli, 82, and his company, Gen-See Capital Corp. placed “numerous advertisements” in Catholic publications, including some claiming “seniors and clergy are absolutely pleased” with the firm’s returns and lack of fees, the Securities and Exchange Commission said in a lawsuit at federal court in New York today.

“Investors’ funds are not, however, invested in anything,” the SEC said in its complaint. “Instead, investor funds are misappropriated by defendants to pay off other investors and perpetuate their fraudulent scheme.”

To contact the reporter on this story: David Scheer in New York at dscheer@bloomberg.net.

Last Updated: January 8, 2009 14:53 EST