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

'Naav Pe Charcha' : PM Modi And Francois Hollande Go On Boat Ride On Seine River

'Naav Pe Charcha' : PM Modi And Francois Hollande Go On Boat Ride On Seine River
Prime Minister Narendra Modi, French President Francois Hollande as well as French Foreign Minister Laurent Fabius and senior French government officials went on a boat ride along the Seine river, a la "nav pe charcha".

'Naav Pe Charcha' : PM Modi And Francois Hollande Go On Boat Ride On Seine River

As A White Cop Shoots Another Black Man, People Ask Do Black Lives Matter?

As A White Cop Shoots Another Black Man, People Ask Do Black Lives Matter?
Do black lives matter, asked horrified Americans as a video showing a white cop in South Carolina shooting a black person running away from him eight times, sparked outrage and fears of another Ferguson.

As A White Cop Shoots Another Black Man, People Ask Do Black Lives Matter?

Senior Pakistani Taliban Leaders Join Islamic State

Senior Pakistani Taliban Leaders Join Islamic State
Senior Pakistani Taliban leaders in a tribal region on Thursday declared allegiance to the Islamic State (IS) terrorist group in another serious setback for the banned outfit at a time when it is under attack in its former strongholds.

Senior Pakistani Taliban Leaders Join Islamic State

Awesome Mashup: 'Lego Dimensions' Combining Bricks, Entertainment Franchises With A Video Game

Awesome Mashup: 'Lego Dimensions' Combining Bricks, Entertainment Franchises With A Video Game
BURBANK, Calif. — The creators of the "Lego" video games are building their own rendition of a toys-to-life franchise.

Awesome Mashup: 'Lego Dimensions' Combining Bricks, Entertainment Franchises With A Video Game

Lahore HC Orders Lakhvi's Release; India Concerned

The Lahore High Court on Thursday ordered the immediate release of Mumbai terror attack's alleged mastermind Zaki-ur Rehman Lakhvi, evoking strong reaction from the Indian government which said "terrorists not being effectively prosecuted" constitutes a real security threat to the country as well as the world.

Lahore HC Orders Lakhvi's Release; India Concerned

Saudi Woman Searches For Her Indian Mother In UAE

Saudi Woman Searches For Her Indian Mother In UAE
A Saudi woman who was separated from her Indian mother after her parents divorced is trying frantically to locate her mother and the search has brought her to the United Arab Emirates (UAE), media reports said Wednesday.

Saudi Woman Searches For Her Indian Mother In UAE