Close X
Tuesday, November 12, 2024
ADVT 
International

Indian American Investment Adviser Gignesh Movalia Pleads Guilty To $9 Million Facebook Stock Fraud

Darpan News Desk IANS, 14 Aug, 2015 12:35 PM
  • Indian American Investment Adviser Gignesh Movalia  Pleads Guilty To $9 Million Facebook Stock Fraud
An investment adviser of Indian descent has admitted to a $9million-fraud involving Facebook stock Thursday, the Federal Bureau of Investigation announced.
 
Gignesh Movalia, the founder of OM Global Investment Fund, pleaded guilty in Tampa before Federal Magistrate Judge Anthony E. Porcelli to one count of investment advisor fraud. He is to be sentenced later.
 
Federal Prosecutor A. Lee Bentley III said Movalia solicited investments in his fund claiming that he could get shares of Facebook before its initial public offering. He raised more than $15 million, of which $9 million was buying Facebook shares. However, Bentley said in a statement, Movalia used the $9 million for other investments and hid this from the investors.
 
Ultimately, OM Global Investment Fund lost $9 million and went broke, Bentley said.
 
Last year in June in a separate civil suit filed by the Securities and Exchanges Commission, Federal Judge Jose E. Martinez in Miami ordered Movalia and OM Investment fund to pay up $1.729 million in illegal profits and fined him $300,000.
 
In additon to the Facebook stocks fraud, the SEC had also accused him of making improper loans to third parties and creating an institution with a name similar to OM Investment Funds to evade monitoring by a Florida state court and using it to solicit funds.

MORE International ARTICLES

Terror Attacks On 3 Continents: One Beheaded In France, Terror Attacks In Kuwait, Tunisia Kill 62

Terror Attacks On 3 Continents: One Beheaded In France, Terror Attacks In Kuwait, Tunisia Kill 62
A man was beheaded and several others injured on Friday in a suspected Islamist attack on a gas factory in Isere, in the Rhone-Alps region of France, which was declared a "terrorist" act by President Francois Hollande, media reports said.

Terror Attacks On 3 Continents: One Beheaded In France, Terror Attacks In Kuwait, Tunisia Kill 62

#BobbyJindalisSoWhite: De-Hyphenated Piyush 'Bobby' Jindal Causes A Twitter Storm In India

#BobbyJindalisSoWhite: De-Hyphenated Piyush 'Bobby' Jindal Causes A Twitter Storm In India
Louisiana's Indian-American Governor Bobby Jindal has found himself in the eye of a twitter storm ever since he kicked off his US presidential campaign distancing himself from his Indian heritage.

#BobbyJindalisSoWhite: De-Hyphenated Piyush 'Bobby' Jindal Causes A Twitter Storm In India

Wales Man Held Guilty Of Trying To Kill Sikh Dentist Sarandev Bhambra

Wales Man Held Guilty Of Trying To Kill Sikh Dentist Sarandev Bhambra
Zack Davies, 26, of Chester Street in Mold, told the court that he never intended to kill Sarandev Bhambra, 24, when he launched his hammer and machete attack, Mirror online reported.

Wales Man Held Guilty Of Trying To Kill Sikh Dentist Sarandev Bhambra

Same-Sex Couples Can Now Marry Across US

Same-Sex Couples Can Now Marry Across US
Giving gay rights activists their biggest victory yet, the US Supreme Court ruled Friday that same-sex couples can marry nationwide and states cannot ban such marriages - an issue that divides America and India too.

Same-Sex Couples Can Now Marry Across US

US Report Highlights 'Widespread Corruption' In India

US Report Highlights 'Widespread Corruption' In India
Even as it praised India for holding "the largest democratic elections in history", the US on Thursday highlighted "police and security force abuses" and "widespread corruption" among its "most significant human rights problems".

US Report Highlights 'Widespread Corruption' In India

Malaysia's Attempt To Move Diwali Holidays Faces Heat

Malaysia's Attempt To Move Diwali Holidays Faces Heat
A recent attempt by Malaysia’s Terengganu state education department to include Diwali holiday dates in the summer to extend the Hari Raya break has faced the ire of the Malaysian Chinese Association (MCA).

Malaysia's Attempt To Move Diwali Holidays Faces Heat