web analytics
May 29, 2015 / 11 Sivan, 5775
At a Glance
News & Views
Sponsored Post


Home » News & Views » US »

SEC Shuts Down Ponzi Scheme Targeting Persian-Jewish Community in Los Angeles

A Ponzi scheme targeted members of the Persian-Jewish community in Los Angeles.

A Ponzi scheme targeted members of the Persian-Jewish community in Los Angeles.
Photo Credit: Yossi Zamir/Flash90

The Securities and Exchange Commission obtained an emergency court order to halt an ongoing Ponzi scheme that targeted members of the Persian-Jewish community in Los Angeles.

The SEC alleges that for the past two years, Shervin Neman raised more than $7.5 million from investors by claiming to be a hedge fund manager. Neman told investors that his purported hedge fund – Neman Financial L.P. – invested in foreclosed residential properties that would be quickly flipped for profit as well as in Facebook shares obtained in private transactions and other highly anticipated initial public offerings including Groupon, LinkedIn, and Angie’s List.

Although Neman promised investors exorbitant returns resulting from his investing acumen and access to pre-IPO shares of well-known companies, what they actually received was simply other investors’ money in hallmark Ponzi scheme fashion.

“Neman deceived members of his own community to raise money in this fraudulent Ponzi scheme,” said Michele Wein Layne, Associate Regional Director of the SEC’s Los Angeles Office. “By exploiting investors’ trust in him, Neman was continually able to raise more money to pay back existing investors and finance an extravagant lifestyle.”

The Honorable Jacqueline H. Nguyen for the U.S. District Court for the Central District of California granted the SEC’s request for a temporary restraining order and asset freeze against Neman and the entities he controlled.

According to the SEC’s complaint, Neman raised funds from at least 11 investors in the fraudulent securities offering. Most of the investors are members of the Los Angeles Persian-Jewish community along with Neman, who lives in the Century City area of Los Angeles. More than 99 percent of the money Neman raised was used either to pay existing investors or fund his lavish lifestyle. Neman spent nearly $1.6 million of investor funds to buy jewelry and high-end cars as well as to finance his wedding and honeymoon, other vacations, and VIP tickets to sporting events.

The SEC’s investigation was conducted by Cindy Eson of the Los Angeles Regional Office. Molly White will lead the litigation. Joshua Bauder, Harden Sooper, and Yanna Stoyanoff conducted the SEC examination that prompted the investigation.

Judge Nguyen has scheduled a court hearing for April 23 at 2 p.m. on the SEC’s motion for a preliminary injunction.

About the Author:


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “SEC Shuts Down Ponzi Scheme Targeting Persian-Jewish Community in Los Angeles”

Comments are closed.

Current Top Story
PA flag at soccer game.
Pro-Palestinian Protesters Invade FIFA Congress
Latest News Stories
PA flag at soccer game.

They stopped Blatter from speaking, waved PA flags and demanded “Israel out.”

Shearing Sheep

Reishit HaGez is the giving to the Kohen the first cuttings of the fleece of sheep grown in the Land of Israel (based on Deut. 18:4: “You are to give them the first fruits of your grain, new wine and olive oil, and the first wool from the shearing of your sheep.”). Most Jews cannot […]

Missionaries in the Tel Aviv area.

Postal officials refuse mailmen’s request to be relieved of the job to deliver Baptist cult material that may be illegal.

The design of the forthcoming Kedem Center, a visitor's center for Jerusalem's City of David.

Final steps are underway for building the City of David’s “Kedem” visitor’s center in Jerusalem that will sit on top of the “Givati Parking Lot” excavation just outside of the Old City of Jerusalem’s walls. The visitor’s center will serve as an entryway to the Jerusalem Walls National Park, which includes the City of David […]

The Orthodox Union, B’nai Brith and the Houston Federation are pitching in.

Massachusetts Gov. Charlie Baker declared Sunday, May 31 as “Celebrate Israel Day,” when thousands of Israeli Americans, Jews and supporters of Israel are to attend the Celebrate Israel Boston Festival sponsored by the Combined Jewish Philanthropies and the Israeli-American Council Boston Chapter. Gov. Baker noted that Israel remains “a tremendous partner, economically and culturally,” to […]

The “rabbi “may be a “reverend” who allegedly was not revered by Ice Cube’s bullies.

Israeli PM Netanyahu talks about his vision for regional cooperation with Arab nations.

Hadera drew the attention of El Paso officials for the city’s desert environment, a large electric power plant, desalination plant and manufacturing complex, and the high-tech incubation programs at the Technion-Israel Institute of Technology, located 30 miles away.

A day devoted to “peaceful co-existence” in Jerusalem was marred by Arab “anti-normalization” thugs.

At least a dozen people are reported to have been killed in the attack, and another 30 wounded.

The labor union at Israel Railways warned Thursday that workers plan to strike on Sunday.

They’re just rackng up the Iranian generals….

The Nusra front now controls all the cities in the province, which shares a border with Turkey.

A yeshiva student from Jerusalem was found lifeless Thursday after he apparently drowned while swimming in nearby Beit Zayit.

PM Netanyahu warns FIFA that Palestinian blackmail will ultimately kill the international soccer federation which hopes to expel Israel from the group.

More Articles from Jacob Edelist
F130210FFMS04

“Over-exposure of security and intelligence activities may seriously harm state security.”

Handle of a footed marble basin decorated with Seilenoi heads, the 1st century BCE.

Lionized as “the greatest builder in human history,” King Herod was also demonized for his cruelty and his shady religious origins.

“We expect continued firing of hundreds of rockets in the coming days.”

The plan is to stagger their recruitment, to allow IDF manpower officials to study the process.

Hamas called the meeting to try and avoid further casualties.

Some of the supervised, ‘bug-free,’ leafy vegetable growers are using higher levels of pesticides than allowed by Health Ministry standards.

Iranian Defense Minister Ahmad Vahidi said on Sunday that Iran has in its possession UAVs (unmanned aerial vehicles) which are far more advanced than the one which the Hezbollah recently sent into Israel.

Last Sunday, Netanyahu told Likud ministers he plans on adopting part of the report without relating to broad legal interpretations, to avoid international criticism. Still, the proposal will add legal flexibility and remove bureaucratic obstacles, making Jewish construction in Judea and Samaria considerably easier.

Printed from: http://www.jewishpress.com/news/us-news/sec-shuts-down-ponzi-scheme-targeting-persian-jewish-community-in-los-angeles/2012/04/17/

Scan this QR code to visit this page online: