{"id":52183,"date":"2023-02-15T12:30:06","date_gmt":"2023-02-15T20:30:06","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=52183"},"modified":"2023-02-16T14:51:37","modified_gmt":"2023-02-16T22:51:37","slug":"man-and-his-brother-conned-40-investors-through-an-investment-company-out-of-6-million","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=52183","title":{"rendered":"Man and His Brother Conned 40 Investors Out of $6 Million Through an Investment Company"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0SANTA ANA, California<\/strong><\/span><\/p>\n

\"\"Federal officials stated Wednesday that a jury found a San Fernando Valley man guilty of scheming with his brother to fraudulently obtain more than $6 million from at least 40 investors through an investment company.<\/span><\/p>\n

They ran out of their parent\u2019s house, officials stated.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sassi Mizrahi, 58, of Sherman Oaks, was found guilty late Tuesday of five counts of wire fraud. The jury found Mizrahi not guilty of one wire fraud count.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 His brother, Motty Mizrahi, 51, of Encino, pleaded guilty on January 6 to six counts of wire fraud and one count of aggravated identity theft.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 According to evidence presented at the six-day trial, Motty Mizrahi falsely portrayed himself as a licensed broker, a certified public accountant, and an experienced trader who employed sophisticated financial option- and insurance-hedging strategies through the brothers\u2019 business, MBIG Company. <\/span><\/p>\n

\"closeup<\/a>Both Mizrahi brothers operated MBIG out of their parents\u2019 home in Encino.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 From June 2012 until March 2019, the Mizrahi brothers raised more than $6 million from investors, promised them \u201cguaranteed\u201d returns between 2% and 3% per month, promised annual rates of return ranging from 30% to 102%, and assured them that their funds could be withdrawn after an initial holding period on an on-demand basis.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Neither Mizrahi brother never invested any victim-investor funds in an account under MBIG\u2019s name. <\/span><\/p>\n

\"\"Instead, Motty Mizrahi transferred most of the victim-investor funds into his personal trading accounts at E*TRADE and TD Ameritrade, in which he accumulated persistent and extensive losses. <\/span><\/p>\n

As a result of their investments with MBIG, victim-investors sustained losses of at least $3.3 million. <\/span><\/p>\n

Sassi Mizrahi received hundreds of thousands of dollars of investor money, and helped his brother conceal the truth about the scheme from MBIG\u2019s investors.\u00a0<\/span><\/p>\n

Sassi Mizrahi and his brother submitted phony monthly account statements to show consistent monthly gains and falsely showed that MBIG\u2019s account balances were between $6 million and $9 million. <\/span><\/p>\n

However, Motty Mizrahi instead lost the investors\u2019 money \u2013 losses he and Sassi Mizrahi denied when confronted by victims who unsuccessfully demanded their money back.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 U.S. District Judge Cormac J. Carney scheduled a June 26 sentencing hearing for Sassi Mizrahi. He faces up to 20 years in federal prison for each wire fraud count.<\/span><\/p>\n

Mizrahi’s sentencing hearing that is scheduled for May 15. He faces up to 20 years in federal prison for each wire fraud count and a mandatory two-year sentence consecutive to his wire fraud prison term for the aggravated identity theft count.<\/span><\/p>\n

In October 2020, the U.S. Securities and Exchange Commission\u00a0obtained a judgment<\/a> of more than $3 million against Motty Mizrahi and MBIG for fraud.<\/span><\/p>\n

The FBI investigated this matter.<\/span><\/p>\n

Assistant U.S. Attorneys Morgan J. Cohen and David Y. Pi of the Major Frauds Section are prosecuting this case.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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