California Stockbroker, Sunil Sharma, Sentenced to 33 Months for Ponzi Scheme
A stockbroker in California was just sentenced in federal court to 33 months in prison for stealing more than $6 million from investors in a complicated scheme.
Sunil Sharma told investors that he was investing their money in conservative portfolios, but he actually was engaging in a risky day trading strategy that backfired. Sharma covered his tracks by telling investors that their accounts were performing well, even sending fraudulent statements to his customers. Unlike a traditional Ponzi scheme, in which investors are generally promised a much higher-than-average rate of return, Sharma’s scheme was harder to pinpoint because it did not offer aggressive returns.
Sharma initially set up his business, Gold Coast Holding, LLC, to trade options before telling his insurance clients that they could make better money by “day trading.” To convince his clients to invest, Sharma told potential investors that their money would be in a diversified portfolio, spread over several markets, and managed by Goldman Sachs – none of which was true. Sharma’s scheme completely collapsed in January.
Call a Los Angeles Stockbroker Fraud Attorney Today
If you invested with Sunil Sharma or Gold Coast Holdings, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles stockbroker lawyer today for a consultation regarding your rights.