web analytics
December 20, 2014 / 28 Kislev, 5775
 
At a Glance
News & Views
Sponsored Post
8000 meals Celebrate Eight Days of Chanukah – With 8,000 Free Meals Daily to Israel’s Poor

Join Meir Panim’s campaign to “light up” Chanukah for families in need.



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.

SocialTwist Tell-a-Friend

Current Top Story
Posted to Twitter in Ferguson, MO by St. Louis County Police: "Bricks thrown at police, 2 police cars burned, gun seized by police. Tonight was disappointing."  Their motto is, "To protect and serve."
Prosecutor in Ferguson Case: ‘Witnesses Lied Under Oath’
Latest News Stories
Posted to Twitter in Ferguson, MO by St. Louis County Police: "Bricks thrown at police, 2 police cars burned, gun seized by police. Tonight was disappointing."  Their motto is, "To protect and serve."

Prosecutor in Ferguson case said ‘some witnesses lied under oath’ to support officer’s version of events.

Arab youth shoot fireworks during clashes with Border Police in Shuafat in Jerusalem.

PA Arabs are continuing near-daily clashes with IDF soldiers; on Friday, fierce fighting broke out after sermons at mosques.

False Alarm 2

Rocket fire was directed by Gaza terrorists at southern Israel’s Eshkol district on Friday for the third time since the summer.

Hamas on Temple Mount

Police must have been too busy arresting Jewish children to notice the Hamas rally on the Temple Mount today.

Was top Hezbollah terrorist a spy for Israel?

Reshet Bet has released their latest election poll…

Radical US Jewish lawyer involved in attempt to unite terrorists.

Israelis will Celiac disease will now be allowed to join combat units.

Teenager attacked Jews on their way to holy site.

Four in serious condition; doctors not sure why.

Liberman and Kachlon may merge right after elections – and the larger party will recommend Liberman for Prime Minister to the President.

A Chabad rabbinic student stabbed in “770″ has returned home from the hospital.

Arabs attacked an Israeli bus traveling between Arad and Be’er Sheva along Highway 31 Thursday evening.

The UN General Assembly approves resolution to refer N. Korea to the Intl Criminal Court at The Hague.

Israeli soldiers stand guard near large public menorah near the site where Dalia Lemkus, 26, was stabbed to death at a bus stop near the entrance to Alon Shvut last month.

US teachers are learning “3-D printing” from the Dept. of Defense.

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: