{"id":51062,"date":"2022-10-11T13:49:22","date_gmt":"2022-10-11T20:49:22","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=51062"},"modified":"2022-10-11T13:49:22","modified_gmt":"2022-10-11T20:49:22","slug":"california-man-sentenced-to-prison-for-stealing-14-million-from-ponzi-scheme-victims","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=51062","title":{"rendered":"California Man Sentenced to Prison for Stealing $14 Million from Ponzi Scheme Victims"},"content":{"rendered":"<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>\u00a0\u00a0LOS ANGELES\u00a0<\/strong><\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3918 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice.png 350w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Officials stated that a Santa Barbara man was sentenced Tuesday to 11 years in federal prison for stealing approximately $14 million from victims.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">According to authorities, the victims thought their investments would be used to purchase annuities issued by Swiss insurance companies and for failing to pay over $3 million in federal income tax.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 U.S. District Judge Stanley Blumenfeld Jr. sentenced Darrell Arnold Aviss, 64.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">The judge also ordered him to pay $ 14 million in restitution and forfeit his interest in a Santa Barbara home worth approximately $4 million.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">At Tuesday&#8217;s court hearing, Judge Blumenfeld, who remanded Aviss into federal custody, described Aviss as \u201ccruel, callous and self-absorbed\u201d and adding, \u201cthe devastation, in this case, is real.\u201d<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0 <img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11510 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/04\/PONZI-SCHEME--300x169.jpg\" alt=\"\" width=\"300\" height=\"169\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/04\/PONZI-SCHEME--300x169.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/04\/PONZI-SCHEME-.jpg 620w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>\u00a0 On June 28, Aviss pleaded guilty to 21 felonies: five counts of wire fraud, one count of money laundering, five counts of engaging in monetary transactions in the criminally derived property over $10,000, three counts of tax evasion, six counts of willful failure to report foreign bank and financial accounts, and one count of aggravated identity theft.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Aviss ran his Ponzi scheme from at least 2012 through the summer of 2020, soliciting money from people who wanted to purchase annuities from insurance companies based in Switzerland, officials stated.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"> <img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1379 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/IRS-seal-300x276.jpeg\" alt=\"\" width=\"300\" height=\"276\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/IRS-seal-300x276.jpeg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/IRS-seal.jpeg 800w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Aviss claimed the Swiss annuities he offered were safe and secure, and, in some instances, he told victims the annuities would pay interest rates ranging from 5% to 7%.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 But Aviss did not use the victims\u2019 money to purchase annuities, even though he arranged for the victims to receive fabricated statements showing the purported value of the annuities, which the false documents showed were increasing over time.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Victims, most of whom were over the age of 60, gave Aviss more than $14 million, with most of that money coming from just one victim. Some money was paid back to victims to keep the scheme running.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Instead of purchasing annuities, Aviss used the victims\u2019 money for his own purposes and to support his lavish lifestyle. <\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">He used the money for, among other things, Ponzi payments to victims, mortgage payments, luxury car leases, expensive watches, trips to Monaco, more than $170,000 in purchases at a Santa Barbara nightclub, and 20 tickets to a U2 concert and after-party.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1073 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2.jpg\" alt=\"\" width=\"299\" height=\"188\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2.jpg 299w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-120x76.jpg 120w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-265x168.jpg 265w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-284x180.jpg 284w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-274x173.jpg 274w\" sizes=\"auto, (max-width: 299px) 100vw, 299px\" \/>One victim lost more than $9.7 million in Aviss\u2019 Ponzi scheme. <\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Aviss stole $400,000 from another victim whom he knew recently had been diagnosed with cancer, according to the prosecution\u2019s sentencing memorandum.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u201cAviss has essentially been living a life of pure crime for about a decade,\u201d prosecutors wrote in a sentencing memorandum. <\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Adding, \u201cbased on the financial records and his statements to the probation officer, Aviss has had no source of money \u2013 no real job \u2013 since at least 2012, apart from the money he stole from the victims, including retirees who denied themselves luxuries to save up the nest eggs Aviss stole.\u201d<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Aviss also defrauded the United States by failing to file tax returns for 2014, 2015 and 2016 and failing to pay any income taxes for those years. Aviss evaded paying more than $3 million in income taxes.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Aviss also failed to file with the Department of the Treasury Reports of Foreign Bank and Financial Accounts for 2015 through 2020. This was an attempt to conceal accounts he controlled in Monaco, where he deposited some of his ill-gotten gains. <\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">He transferred victims\u2019 money to these offshore accounts, one of which was established with information from an identity theft victim.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI and IRS Criminal Investigation conducted the investigation in this matter.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorneys Monica E. Tait and Ali Moghaddas of the Major Frauds Section prosecuted this case. <\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Assistant U.S. Attorney Daniel G. Boyle of the Asset Forfeiture and Recovery Section is handling asset forfeiture matters in this case.<\/span><\/p>\n<p class=\"yiv0355787728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 Officials stated that a Santa Barbara man was sentenced Tuesday to 11 years in federal prison for stealing approximately $14 million from victims. According to authorities, the victims thought their&#8230;<\/p>\n","protected":false},"author":1,"featured_media":11461,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-51062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>California Man Sentenced to Prison for Stealing $14 Million from Ponzi Scheme Victims<\/title>\n<meta name=\"description\" content=\"\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 Officials stated that a Santa Barbara man was sentenced Tuesday to 11 years in federal prison for stealing approximately $14\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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