Federal Judge Orders Prison Time
In the latest news regarding the Essex Holding Ponzi Scheme, a Miami federal judge has sentenced a man to 15 years in prison and ordered him to forfeit more than $30 million in property and money. The money and property were obtained through his sugar shipping and mining Ponzi scheme and another scam he perpetrated.
Navin Shankar Subramaniam Xavier ran both of his schemes through his Miami Gardens-based company Essex Holdings Inc. Xavier pled guilty in January to two counts of wire fraud, during which he faced up to 20 years in jail for each charge.
According to prosecutors, most of the money Xavier obtained in the Essex Holding Ponzi Scheme was used to purchase lavish personal goods, including luxury vehicles, and watches, and diamonds. He transferred more than $13 million to accounts in Chile, Malaysia, and Singapore.
The FBI stopped Xavier after learning he made travel plans to Haiti the same day he was due to appear in court. He was considered a flight risk.
The Workings of the Essex Holdings Ponzi Scheme
To lure investors to his scheme, Xavier issued false financial statements through Essex Holdings and offering rates of return between 8-25% within nine months. He used new investor money to pay off earlier investors, a Ponzi-scheme hallmark.
He also secured payments and property from South Carolina by presenting phony financials to the South Carolina Coordinating Council for Economic Development. Essex was supposed to invest more than $54 million of its money into a project over a five-year period – it does not appear that any money was ever invested in the project.
Eventually, Xavier’s Ponzi scheme unraveled when he failed to have sufficient funds to pay off earlier investors.
Did You Invest with Essex Holdings?
Even savvy investors can be defrauded by a Ponzi scheme. If it sounds too good to be true, it probably is. If you believe you have been the victim of a similar kind of scam to the one perpetrated by Xavier and his company, contact an experienced Ponzi-scheme attorney today.
Call a Ponzi Scheme Attorney Today
If you are looking for an attorney to review your rights and options, the attorneys at Dimond Kaplan & Rothstein, P.A. have helped Ponzi-scheme victims throughout the United States and recovered millions for those victims.
With offices in Los Angeles, they have helped stockbroker fraud victims throughout Brentwood, Santa Monica, Hollywood, and West Hollywood.