The Brooklyn man accused of running a $40 million Ponzi scheme out of a storefront—with many of the investors/victims coming from his Bay Ridge neighborhood—turned over papers to the feds in hopes of avoiding an indictment. But it seems one of the notes Philip Barry wrote says, "I'm just a crook running a Ponzi scheme"—and naturally he wants to keep that out of the case!

The Daily News reports, "In the note, he writes that he may be 'incompetent' but also reveals he may have lined up several new deep-pocket suckers to invest in his money-losing Ponzi enterprise." He also wrote in the memo to himself, "You said all you care about right now is your family and your family's money, wouldn't it be better then if I obtained a tiny percentage of (the new investors') assets to replace yours and your family's investments? Why then put something on the Internet which could sabotage that? If you pile on and contribute to the run on the bank and crisis atmosphere, then it will quickly become a regulatory matter." Why not just include one's diary?

Barry had allegedly promised his client returns of 12-21% and was charged with fraud last year. Barry's lawyers claim, "He created the document to gather his thoughts and to prepare himself for conversations with disgruntled investors. It may mean no more than that he took investors' criticisms to heart or is an introspective person willing to look at himself critically. ... There is significant risk that the jury will wrongly construe Mr. Barry's statement as some kind of confession," the lawyers say.