The Securities and Exchange Commission (SEC) announced on Monday that it has charged Beverly Hills, California-based NewPoint Financial Services, Inc. and its co-owners and controller for conducting an unregistered offering fraud aimed at Iranian-Americans in the Los Angeles area. The SEC obtained an emergency court order to freeze their assets and preserve remaining funds that were collected from investors. The SEC also seeks preliminary and permanent injunctions and civil penalties against the defendants.
The SEC’s complaint, filed in U.S. District Court for the Central District of California, alleges that NewPoint, co-owners John Farahi and Gissou Rastegar Farahi, and its controller Elaheh Amouei targeted investors in the Iranian-American community by touting New Point on a daily finance radio program that John Farahi hosts on a Farsi language radio station in the Los Angeles area. The SEC alleges that the Farahis or Amouei misled more than 100 investors into purchasing more than $20 million worth of debentures that they falsely told them were low-risk. Many investors also were falsely told that they were investing in FDIC-insured certificates of deposit, government bonds, or corporate bonds issued by companies. The SEC alleges that most of the money raised was instead transferred to accounts controlled by the Farahis to, among other things, fund construction of their multi-million dollar personal residence in Beverly Hills.
According to the SEC allegations, Farahi and Amouei also made further misrepresentations to investors in an effort to lull them into keeping their money with NewPoint, saying that their money is safe and that they are guaranteed to get the entirety of their investment back.
A hearing on whether a preliminary injunction should be issued against the defendants and whether a permanent receiver should be appointed is scheduled for Jan. 15, 2010, at 10:00 a.m.
A white collar crime is defined as an illegal act(s) using deceit and concealment to obtain money, property, or services, or to secure a business or professional advantage. This can differ from violent crimes because they usually don’t involve physical violence and tend to relate to financial matters instead. A conviction can carry heavy consequences depending on the severity of the crime.
In the case of the NewPoint co-owners and controller, there may be penalties as well as civil consequences that the defendants might face if convicted. An experienced team of Los Angeles white collar crime defense attorneys can guide you through the process of white collar trials and devise a strategy that can prove your innocence or reduce consequences. Kestenbaum, Eisner & Gorin, LLP can offer you advice and legal counsel if you have been accused or charged with a white collar crime.
Tagged as: los angeles embezzlement, los angeles white collar defense attorney
Eisner Gorin LLP has been recognized as one of the best U.S. law firms, based on the experience, professionalism, and ethics of its criminal defense lawyers and attorneys. We aggressively defend clients in all Southern California courtrooms on state and federal charges, including DUI, DMV, misdemeanor, felony, juvenile cases, in the following communities and courthouses.