He was living large on the backs of old folks by running an old-fashioned con, according to the feds.

Joseph Mazella, 52, of Staten Island was arrested this morning and charged with fraud for operating a $12 million Ponzi scheme under the cover of a real estate investment firm, Great Atlantic Group. The Navy veteran posed as a white knight trying to rescue people at risk of losing their homes. But he had actually stopped trading in real estate and instead just snookered potential investors into forking over tons of cash that fueled his own operations, according to an indictment unsealed yesterday in Brooklyn federal court.

Mazella was charged with securities fraud, wire fraud and money laundering. His offices in the Bulls Head section were raided on Jan. 28 Authorities say Mazella used the money handed over by investors to pay off earlier investors and to cover the mortgage on his home, to pay for his Porsche and to subsidize family expenses.

“Perhaps the most egregious aspect of this case is that the defendant allegedly encouraged victims – some, senior citizens – to obtain mortgages on their homes and to invest the proceeds in … nothing more than a Ponzi scheme” US Attorney Loretta Lynch said.