WASHINGTON (Reuters) - US regulators charged a Miami Beach, Florida, philanthropist with fraud for allegedly running a $900 million Ponzi scheme, the Securities and Exchange Commission said yesterday.

Nevin Shapiro, a major donor to the University of Miami's sports programme, sold investors securities that he claimed would fund his Capitol Investments firm's grocery business and touted returns as high as 26 percent annually, the SEC said.

Instead, Shapiro repurposed funds, making extravagant donations to charities and running a Ponzi scheme where he used funds from new investors to pay the principal and interest to earlier investors, the SEC said.

The 41-year-old Shapiro surrendered to authorities yesterday morning in New Jersey, his lawyer said.

According to the SEC, Shapiro used at least $38 million of investor funds to finance other business activities and a lavish lifestyle, including a $5 million home in Miami Beach, expensive clothes and season tickets to sporting events.

To raise funds, Shapiro attracted investors through word of mouth from friends and business associates, and reassured investors by boasting of his wealth, the SEC said.

When investors questioned Shapiro, he showed them fabricated invoices and purchase orders for nonexistent sales, the SEC said.

The University of Miami named a student athlete lounge after Nevin Shapiro, according to the website of the university's football team. The website referred to the "tremendous philanthropic support he provides."

The University of Miami sports department did not return a telephone call seeking comment.

The website of the Miami Hurricanes, the University of Miami football team, lists Shapiro as "an ardent, devoted, intense supporter of the University of Miami Athletics".