(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 was indicted in federal court in Manhattan 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. Silver resigned in January after being arrested as part of an anti-corruption investigation.

Trebitsch allegedly promised his investors up to 16 percent returns with very low risk invested in low cap stocks before the five-year scheme collapsed in December.

He allegedly invested only a portion of the investors’ money and used the rest for personal benefit and to repay other investors, the complaint said.

Michelle Trebitsch, who is 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.