Beverly Hills-based resident, who orchestrated a number of fraud schemes to defraud investors out of more than $18 million in investment funds has been sentenced 10 years at federal prison. Scams were perpetrated by falsely promising investors significant returns on investments made in marijuana businesses or other ventures.
The Fraudulent Schemes
He claimed to be a cannabis businessman with lucrative investment opportunities. He promised investors substantial returns and that their funds would finance the ventures. Instead of using the promised funds to finance these ventures, he used the money to cover personal expenses, and pay previous investors.
The Legal Process and Sentence
The defendant was sentenced in federal court after pleading to several counts of securities fraud and wire fraud. The federal court sentenced the defendant to a 10 year prison term in order to highlight the seriousness of the crimes and financial damage caused by the perpetrators. The court also ordered compensation for the investors who were defrauded.
The Impact of the Project on Community
It is important to do due diligence before investing in any new industry, including cannabis. To protect themselves against similar fraud schemes, potential investors should thoroughly investigate and confirm the legitimacy of any investment opportunities.