(JTA) — The son-in-law of former New York Assembly Speaker Sheldon Silver was arrested for allegedly running a $7 million Ponzi scheme.

Marcello Trebitsch, 37, was arrested on Monday by federal agents and indicted in Manhattan federal court on charges of wire fraud and securities fraud. He was released on $500,000 bail.

Trebitsch, who is married to Silver’s daughter Michelle, could face up to 40 years in jail and $5.25 million in fines.

In the five-year scheme, which collapsed in December, Trebitsch allegedly promised up to 16 percent returns with very minimal risk for the investors who put their money in low cap stocks. He allegedly invested only a portion of the money and used the rest for personal benefit and to repay other investors, the complaint said.

Michelle Trebitsch, a certified public accountant, was a co-owner and managing partner of the investment fund, Allese Capital, The New York Times reported, citing the complaint. She has not been charged.

Silver resigned in January after being arrested in an anti-corruption investigation.