Son-in-law of former New York Assembly Speaker Sheldon Silver has been taken into custody and also charged for defrauding investors out of $7 million in a Ponzi scheme, as per a complaint unsealed in federal court.

On Monday night, Marcello Trebitsch was presented in federal court in Manhattan on one count of wire fraud and one count of securities fraud. It has been notified that he was released on $500,000 bond. He might face up to 20 years in prison and a $5 million fine, if convicted.

The former Democrat powerbroker quit from his leadership position after being indicted on corruption charges in January. According to US Attorney Preet Bharara, the 37-year-old Trebitsch, told investors he would make use of their money to trade in securities through his investment fund. Trebitsch also promised investors for double-digit returns with low risk.

Trebitsch only invested a portion of the money and remaining money was used by him for his own personal benefit and to repay other investors. Marcello Trebitsch married to Michelle Trebitsch, Silver's daughter. Michelle Trebitsch co-owns the investment firm Allese Capital with her husband. Michelle Trebitsch, a certified public accountant, has not been charged.

The investment occurred between 2009 and 2013. According to the company, Trebitsch faced losses against the money he invested and he did not disclose it to investors. He had hidden them by sending them bogus account statements and tax forms showing annual returns of 15% to 19%.

Silver was taken into custody when prosecutors concluded that he exploited his influence to reap $4 million in kickbacks and payoffs more than 10 years. Silver appeared at a New York courthouse on February 24, 2015, for his arraignment on corruption charges.