Man runs $12 million Ponzi scheme

It seems a U.S. business owner and mortgage broker has been keeping himself busy—and very rich—over the past few years.

Not only did Kaveh Vahedi run a $12 million Ponzi scheme through his company KGV investments, he also “submitted at least 250 fraudulent loan applications, replete with falsified employment and income records”, says Bill Singer, Wall Street blogger.

The FBI reports he “agreed to plead guilty to federal fraud charges, and admitted he ran three separate scams” at the end of November.

And that’s not all. Vahedi also allegedly stole from his parents by posing as his father to withdraw money from their accounts, says Singer, as well as take out a home equity loan on their home.

What did he use all these funds for, you ask? Singer says they “wound up being diverted towards his mortgages, luxury vehicles, and tuition. By the time this latest Ponzi-carnage was complete, the victims’ losses amounted to over $8 million.”

Read more on the details of the case, and on what charges he faces.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.