September 27, 2021

News

News Network

Georgia Man Sentenced to Prison for Running Ponzi Scheme

13 min read
<div>A Georgia man has been sentenced to 60 months in prison followed by three years of supervised release for running a Ponzi scheme that ensnared over a hundred victims, and induced college students and others to part with money for his own personal benefit.</div>

A Georgia man has been sentenced to 60 months in prison followed by three years of supervised release for running a Ponzi scheme that ensnared over a hundred victims, and induced college students and others to part with money for his own personal benefit.

Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Charles Peeler of the Middle District of Georgia, and Special Agent in Charge Chris Hacker of the FBI’s Athens Field Office made the announcement.

Syed Arham Arbab, 23, of Atlanta, Georgia, was sentenced by U.S. District Judge C. Ashley Royal of the Middle District of Georgia.  Judge Royal also ordered the defendant to pay $509,032.12 in restitution to his victims.  Arbab pleaded guilty in October 2019 to one count of securities fraud. 

As part of his guilty plea, Arbab admitted that from May 2018 through May 2019, while enrolled at the University of Georgia campus in Athens, Georgia, he solicited investors, many of whom were his fellow students, to invest in his entities, Artis Proficio Capital Management and Artis Proficio Capital Investments (collectively, APC), which he told investors were “hedge funds.”  Arbab admitted that he convinced approximately 117 investors in Georgia and other states to invest funds with him and APC, and that he made material misrepresentations to those investors in order to induce them to invest and maintain their investments with him.

Arbab admitted that he made a number of misrepresentations in order to persuade victims to invest with him, including misrepresenting the funds’ returns, the number of investors, the total funds invested and the nature of the investment plays being made.  He also admitted fabricating account statements.  Victims invested approximately $1 million with Arbab in the course of his scheme, with Arbab falsely promising rates of returns as high as 22 percent or 56 percent, when his overall returns were nowhere near these amounts.  Arbab offered some investors a seemingly risk-free “guarantee” on the first $15,000 invested, and the majority of investors, especially those who were students or younger professionals, invested less than this amount, believing that even if Arbab’s investment choices proved unsound or the market behaved unpredictably, they would still be paid back their entire principal investment.  

Arbab admitted that knew he did not have the liquid capital to make good on these guarantees when he made them, but he did not disclose this to his investors.  Further, when Arbab learned that some prospective investors were UGA football fans, he told them that a famous NFL player and UGA alumnus was an investor in the fund, when in fact the football player had never invested with APC.  Arbab also misrepresented that he was an MBA candidate at UGA’s Terry College of Business. In fact, ARBAB had applied to and been rejected by UGA’s MBA program and was operating the fund primarily from his fraternity house as an undergraduate.

Arbab further admitted that he spent investor funds on personal expenses, including clothing, shoes, retail purchases, fine dining, alcoholic beverages, adult entertainment and interstate travel, including spending thousands of dollars gambling during three trips to Las Vegas in 2018 and 2019.

The FBI investigated the case.  Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lyndie Freeman of the Middle District of Georgia’s Complex Frauds Unit are prosecuting the case.  The Department of Justice appreciates the substantial assistance of the Enforcement Division of the Securities and Exchange Commission.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information here: https://www.justice.gov/criminal-fraud/victim-witness-program.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

News Network

  • Bloods Gang Members Sentenced to Life in Prison for Racketeering Conspiracy Involving Murder and Other Crimes
    In Crime News
    Five members of the United Blood Nation (UBN or Bloods) street gang were sentenced in Charlotte, North Carolina, after standing trial on federal Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and other charges. These defendants’ sentences are the culmination of a prosecution that charged 83 UBN gang members in the Western District of North Carolina with RICO conspiracy and other crimes.
    [Read More…]
  • Bermuda Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • Homeland Security: Progress Made; More Direction and Partnership Sought
    In U.S GAO News
    Enhancing homeland security is a complex effort that involves all 50 states, the District of Columbia, and the territories; thousands of municipalities; and countless private entities. Since September 11, the nation has taken many actions to combat terrorism and enhance homeland security. It is well known that the U.S. military is conducting operations in Afghanistan. Various legislative and executive branch actions to enhance homeland security have been taken or were underway prior to and since September 11. Government and nongovernment activities are looking to the Office of Homeland Security for further guidance on how to better integrate their missions and more effectively contribute to the overarching homeland security effort. Having a common definition can help avoid duplication of effort and gaps in coverage by identifying agency roles and responsibilities. Although the agencies are looking for guidance, they also want to ensure that their unique missions are factored in as guidance is developed. At the same time, some agencies are unsure what they should be doing beyond their traditional missions. Once the national strategy is issued, federal, state, and local government agencies and private sector groups will need to work together to achieve the goals and objectives. Public-private partnerships used to address Y2K concerns can also be used to promote the national strategy.
    [Read More…]
  • International Law Enforcement Operation Targeting Opioid Traffickers on the Darknet Results in over 170 Arrests Worldwide and the Seizure of Weapons, Drugs and over $6.5 Million
    In Crime News
    Today, the Department of Justice, through the Joint Criminal Opioid and Darknet Enforcement (JCODE) team joined Europol to announce the results of Operation DisrupTor, a coordinated international effort to disrupt opioid trafficking on the Darknet. The operation, which was conducted across the United States and Europe, demonstrates the continued partnership between JCODE and Europol against the illegal sale of drugs and other illicit goods and services. Operation DisrupTor builds on the success of last year’s Operation SaboTor and the coordinated law enforcement takedown of the Wall Street Market, one of the largest illegal online markets on the dark web.
    [Read More…]
  • Attorney General Merrick B. Garland Delivers Remarks at Joint DOJ-EPA Event with EPA Administrator Michael S. Regan: Promoting Justice for Victims of Environmental Crime
    In Crime News
    Good afternoon and thank you so much for those kind words, Kris.
    [Read More…]
  • COVID-19: Defense-Wide Working Capital Fund Cash Management and Defense Logistics Agency Pandemic Response
    In U.S GAO News
    What GAO Found Three Department of Defense (DOD) agencies, including the Defense Logistics Agency (DLA), use the Defense-Wide Working Capital Fund (DWWCF) to fund their operations and then deposit the proceeds from sales of goods and services to their customers back into the fund. DOD received $500 million from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) for the DWWCF in order to position the agency to respond to the Coronavirus Disease 2019 (COVID-19) pandemic. GAO found: DOD Actions Helped Maintain DWWCF Balances within Targeted Ranges. Several transactions increased the DWWCF cash balances. In particular, the DWWCF received nearly $600 million in allotments from appropriations from January 2020 through January 2021, including $500 million from the CARES Act. DLA, which uses the DWWCF to fund operations, such as providing consumable items and fuel to its military customers and other federal agencies, also received $2 billion in advance billings from the Department of Health and Human Services (HHS) and Federal Emergency Management Agency (FEMA) from April 2020 through September 2020. DOD officials said they also took actions that had the effect of mitigating the extent to which DWWCF cash balances exceeded the targeted upper cash requirement. DOD transferred $241 million to military services' working capital funds and reduced fuel prices by 20 percent, among other things. DLA officials said that they expect the $3.6 billion cash balance to decline as advance-billed orders are filled and fuel prices recover. DLA Responded to a Surge in Medical Materials Demand during the Pandemic. From March 2020 through May 2021, DLA executed about 31,000 contract actions marked as COVID-19–related, resulting in $3.67 billion in contract obligations. DLA officials said FEMA and HHS became DLA's largest customers for COVID-19–related items during the pandemic. COVID-related procurements included test kits, gloves, N95 respirators, hand sanitizers, surgical masks, ventilators, and protective gowns, among other things. DLA Did Not Plan for Pandemic Support, but It Tracked Performance and Identified Lessons Learned. DLA officials told GAO they were not tasked with planning to support civilian agencies in a pandemic, and they had not developed plans for supporting other federal agencies during a pandemic prior to the current pandemic. However, DLA continued to monitor and measure its medical supply chain performance during the pandemic using previously established measures, which showed that its performance decreased during the pandemic. Officials from DLA and from its customer agencies attributed this decrease to difficulties experienced by vendors in responding to medical material demand during the global pandemic. DLA Increased Medical Contracting and Reduced Contracting in Some Other Areas. GAO's analysis found that DLA obligated $40.1 billion on contracts from March 2020 through February 2021, a decrease of more than $2.0 billion (4.8 percent) as compared with the same 12-month period prior to the pandemic. DLA obligations increased in 64 of 134 product service groups, with the largest increases occurring in the medical, dental, and veterinary equipment and supplies; firefighting, rescue, and safety equipment and environmental protection equipment and materials; and instruments and laboratory equipment groups. DLA obligations decreased in 69 of 134 product service groups, with the largest decreases occurring in the fuels, lubricants, oils and waxes and the aerospace craft components and accessories product service groups.  Of the 11,832 DLA vendors used during this period, GAO found that DLA obligations related to 6,208 (52.5 percent) decreased, 4,960 (41.9 percent) increased, and 664 (5.6 percent) had no change. DLA obligations related to vendors providing medical, dental, and veterinary equipment and supplies had the largest increases, and obligations related to those providing fuels, lubricants, oils, and waxes and those providing aerospace components had the largest decreases. The decreases did not significantly alter the proportion of DLA contracting obligations going to vendors in three primary socioeconomic groups (small disadvantaged, women–owned, and minority–owned). Why GAO Did This Study This report responds to a request from the Readiness Subcommittee of the House Armed Services Committee that GAO review DOD's management of the DWWCF cash balance and DLA's response to the COVID-19 pandemic, and it is part of GAO's body of work in response to the CARES Act. This report provides information on: (1) actions DOD took from October 2018 through March 2021 to maintain the DWWCF cash balance between its targeted upper and lower cash requirements; (2) the effects of the pandemic on DLA's supply chain management activity, including medical supplies, starting in March 2020; (3) DLA's planning to support a pandemic event and tracking of its performance in meeting customer needs from March 2020 through June 2021; and (4) changes in DLA's contracting activity, by type of product and individual vendor, from March 2019– February 2020 and March 2020–February 2021. GAO reviewed DWWCF cash balances and budget estimates; DLA readiness reports and performance measures; and federal contracting data; and interviewed officials of DLA and its customers. For more information, contact Elizabeth A. Field at (202) 512-2775 or fielde1@gao.gov.
    [Read More…]
  • Brunei Travel Advisory
    In Travel
    Exercise increased [Read More…]
  • Secretary Michael R. Pompeo And Kuwaiti Foreign Minister Sheikh Ahmad Nasser Al-Mohammad Al-Sabah
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Celebrating Older Americans Month by Empowering Our Older Adults
    In Human Health, Resources and Services
    May 31, 2021 By: Xavier [Read More…]
  • U.S Delegation Travel to Brussels, Belgium
    In Human Health, Resources and Services
    Office of the [Read More…]
  • The Extraordinary Sample-Gathering System of NASA’s Perseverance Mars Rover
    In Space
    Two astronauts collected [Read More…]
  • Rule of Law Assistance: Agency Efforts Are Guided by Various Strategies, and Overseas Missions Should Ensure that Programming Is Fully Coordinated
    In U.S GAO News
    What GAO Found The Department of State (State) and the U.S. Agency for International Development (USAID) allocated more than $2.7 billion for rule of law assistance from fiscal years 2014 through 2018—the latest available data as of GAO's review. Of that, State allocated over $2 billion and USAID allocated over $700 million. State and USAID funded some of these programs through the Department of Justice (DOJ). Rule of law assistance funded a variety of activities including improving justice institutions, legal reform, and promoting a culture of lawfulness. The agencies implemented these programs globally but allocated most funds to the Western Hemisphere and Afghanistan. Global Distribution of Bilateral Rule of Law Assistance Allocations, Fiscal Years 2014–2018 After Congress appropriates funding, agencies determine rule of law allocations through the foreign assistance budget process. State and USAID identify rule of law as a goal in agency-wide strategic documents and hold an annual interagency roundtable regarding rule of law assistance to determine those allocations. Rule of law assistance is guided by national and agency-, bureau-, and mission-specific strategies that are linked to the national security goals of the United States. These strategies discuss the agencies' roles and responsibilities in improving the rule of law. State and USAID guidance highlights the importance of coordination between agencies as they design and implement rule of law assistance, but not all agencies are included in some of the key coordination mechanisms used in four countries GAO selected for review. Agency officials in the selected countries cited the use of some informal and formal coordination practices, such as the use of law enforcement working groups, but State policy does not require all entities that may be involved in rule of law assistance to participate in these working groups. For example, in three of the four selected countries, officials described coordinating rule of law assistance, in part, through these working groups, which may not include critical agencies such as USAID. According to State policy, these working groups are designed to achieve other goals using agencies and offices that are not involved in providing rule of law assistance. Without verifying that interagency coordination includes all relevant entities, missions may not know whether they are fully leveraging interagency resources or ensuring that they do not duplicate or overlap rule of law assistance. Why GAO Did This Study Rule of law strengthens protection of fundamental rights, ensures a robust civil society, and serves as a foundation for democratic governance and economic growth. According to State, countries with a strong rule of law provide a more level playing field for American businesses to engage and compete, and countries with a weak rule of law can potentially export transnational threats and economic insecurity, undermining the interests of the United States. GAO was asked to review U.S. rule of law assistance around the world. This report examines (1) how State and USAID allocated funds for this assistance in fiscal years 2014 through 2018, (2) how agencies strategically plan and allocate this assistance globally, and (3) what processes agencies have to design, implement, and coordinate this assistance in selected countries. GAO reviewed State, USAID, and DOJ documents and data for fiscal years 2014 through 2018 and interviewed officials in Colombia, Kosovo, Liberia, the Philippines, and Washington, D.C. GAO chose these countries on the basis of funding amounts and other factors.
    [Read More…]
  • Justice Department Reaches Settlement with the Town of Irmo, South Carolina, to Resolve Allegations of Discrimination Against Homeowner with Disability
    In Crime News
    The Justice Department announced today that the Town of Irmo, South Carolina, has agreed to pay $25,000 to a homeowner with a disability as part of a settlement agreement resolving the government’s Fair Housing Act (FHA) lawsuit. 
    [Read More…]
  • Honduras Travel Advisory
    In Travel
    Do not travel to [Read More…]
  • Department of Justice Revises Policy Governing Grants Associated with Foreign-Made Unmanned Aircraft Systems
    In Crime News
    The Department of Justice today announced that its Office of Justice Programs (OJP) has issued a revised policy governing the award of grants for the purchase and operation of foreign-made Unmanned Aircraft Systems (UAS). The new policy requires grant recipients to utilize OJP funds to procure and operate UAS only in a manner that promotes public safety, protects individuals’ privacy and civil liberties, and mitigates the risks of cyber intrusion and foreign influence.
    [Read More…]
  • Operation Legend: Case of the Day
    In Crime News
    On Aug. 27, 2020, Andrew Sheperd was charged by a federal grand jury with being a felon in possession of a firearm, with being in possession of a firearm in furtherance of a drug trafficking offense, and possessing with intent to distribute fentanyl, heroin, and methamphetamine .
    [Read More…]
  • Attorney General William P. Barr Remarks at White House Roundtable on Housing Assistance Grants for Victims of Human Trafficking, Remarks as Prepared for Delivery
    In Crime News
    Thank you for being here. The scourge of human trafficking is the modern-day equivalent of slavery. Eradicating this horrific crime and helping its victims are top priorities for President Trump’s Administration, including the Department of Justice. I thank the President for his steadfast commitment to this issue, and I thank Ivanka for her leadership and for hosting us today. I also thank all the survivors and their advocates here for their courage and determination to end this evil practice.
    [Read More…]
  • Court Intervention Teams Target Substance Abuse
    In U.S Courts
    Two specialized programs in the Northern District of California are harnessing local resources to help high-risk individuals rebuild their lives.
    [Read More…]
  • Justice Department Brings Enforcement Action Against Centurylink
    In Crime News
    The Department of Justice announced today that CenturyLink, Inc. has agreed to settle allegations that CenturyLink violated the court-ordered Final Judgment designed to prevent anticompetitive effects arising from its acquisition of Level 3 Communications, Inc. 
    [Read More…]
  • Four MS-13 Members Indicted for 10 Murders, Kidnapping and Racketeering Charges
    In Crime News
    Four alleged members of La Mara Salvatrucha (MS-13) have been charged in a federal superseding indictment with a racketeering conspiracy involving multiple murders, kidnappings and burglaries, as well as drug trafficking.
    [Read More…]
Network News © 2005 Area.Control.Network™ All rights reserved.