The Securities & Exchange Commission (SEC) is suing a California attorney in Los Angeles federal court over his alleged involvement with an accused fraudster in taking $6 million from investors by promising high returns on prime bank instruments that never existed. The attorney faces charges of selling unregistered securities, securities fraud, and aiding and abetting his partner’s crime.
According to the SEC, Jilbert Tahmazian was part of a two-man scheme in 2009 and 2010 that solicited funds from at least four investors, telling the investors that they would make between 15-30% a week in interest on what proved to be fictitious securities. Instead, Tahmazian took a cut and passed the rest on to his partner, Vahak Awadisian. Awadisian was charged in 2013 of carrying out a similar scam in Alabama. The company name the pair operated under was called Magnet Investment Group, LLC.
The complaint states the pair met in 2009, when Awaidisian leased office space near Tahmazian. It was there they hatched their plan to lure investors into “management agreement contracts” promising impossibly high returns on financial instruments that didn’t exist.
Over the course of several months, Tahmazian transferred over $6 million to Awadisian, keeping approximately $100,000 in fees. One of the investors sued in 2011, and holding that Tahmazian breached his fiduciary duty by transferring the investor’s funds.
Call a Los Angeles Investment Fraud Attorney Today
If you invested with Tahmazian, Awadisian, or their company, Magnet Investment Group, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles investment fraud attorney for a consultation today.