(Image source from: Indian American jailed in fraud case)
Sachin Uppal, 37, An Indian American in Brighton, Michigan sentenced to 64 months imprisonment by a federal court for $3.8-million in a fraudulent investment scheme. U.S. District Judge Nancy G. Edmunds sentenced Uppal, following his August guilty plea to wire fraud charges.
Court documents shows that, Uppal maintained the Jefferson Smith Trading Company LLC (“JSTCO”) from July 2007through September 2013. Though Uppal was not a licensed investment advisor, he marketed JSTCO to potential investors and accumulated investor funds, describing it as a “hedge fund.”
Uppal introduced himself to the investors as a “day trader,” who commonly use investor funds to buy and sell financial instruments within the same trading day, which can reduce risk to investors.Among the victims of Uppal his family friends were also there. In this type of affinity fraud cheaters oftenly targets members from identifiable groups, such as a religious or ethnic communities or clubs. Uppal was ordered to compensate his victims in the amount of $3,867,187.
Uppal simply filled his stomach with the money without conducting any trades at all. When investors asked to close their accounts and withdraw their investment funds, Uppal smoothly suggested them not loose profitable duck.
Uppal promised a return of 18 to 20 percent of the total amount per year, with a minimum investment commitment of only 12 months. After accumulating initial investment, Uppal emailed his victims fake “year-to-date investment summaries” to pretend that their accounts were performing continuously and to convey them to invest additional funds.
Investors are suggested to approach the Financial Industry Regulatory Authority (FINRA) website (http://www.finra.org) and its Broker Check resource before investing in any firm or to any person.
Uppal really betrayed everyone who believed in him including family members and well wishers also.
AW: Kannamsai
