Home News Local News University of Georgia Student Ran $1 Million Ponzi Scheme from Frat House,...

University of Georgia Student Ran $1 Million Ponzi Scheme from Frat House, Spending Funds on Alcohol, Strippers and Lavish Las Vegas Trips

An undergraduate pupil on the University of Georgia ran a million-dollar Ponzi scheme from his frat home—duping fellow college students into investing 1000’s of {dollars} whereas he used the funds on alcohol, strip golf equipment and lavish playing journeys to Las Vegas.

Syed Arham Arbab, a 22-year-old from Augusta, admitted to defrauding 117 traders in U.S. District Court within the Middle District of Georgia on Friday and faces as much as 5 years in jail, along with a $10,000 wonderful.

The former mobile biology and genetics pupil admitted to mendacity to dozens of traders between May 2018 to his commencement in May 2019, promising them grand returns if their cash was invested in his two entities—Artis Proficio Capital Management and Artis Proficio Capital Investments.

“The defendant engaged in a pattern of deceit to gain the trust of unwitting investors who gave him their hard-earned money for what they believed was a sound investment,” Charlie Peeler, the U.S. Attorney for the Middle District of Georgia, stated in a statement.

“Instead of investing the victims’ money, the defendant funded a lavish lifestyle.”

In addition to the booze, strip golf equipment and three journeys to Las Vegas, Arbab additionally spent the funds on garments, sneakers and wonderful eating.

Alongside fabricating account statements and making plenty of misrepresentations to be able to persuade people to speculate—such because the fund’s returns, the variety of traders, and the full quantity invested—Arbab additionally advised college students and their relations that different traders included a well-known University of Georgia alumni and NFL Player.

The unnamed soccer participant had not been an investor with Arbab, the assertion stated.

University of Georgia Student Ran $1 Million Ponzi Scheme from Frat House, Spending Funds on Alcohol, Strippers and Lavish Las Vegas Trips
File photograph of a fraternity home in Berkeley. Syed Arham Arbab, 22, admitted to working a million-dollar Ponzi scheme from his University of Georgia frat home. Getty

Investors have been additionally promised returns as excessive as 56 % at one stage, along with a “risk-free guarantee” on the primary $15,000 invested.

Arbab admitted in court docket that he knew he didn’t have the cash to make good on these ensures when he made them, however he didn’t disclose this to his traders, the assertion added.

“Unfortunately this case is a stark reminder to investors to be very careful where they entrust their hard earned money, and always be skeptical of offers that sound too good to be true,” stated Chris Hacker, Special Agent in Charge of FBI Atlanta.

“The victims of this scheme, many of them students, will never recover their losses, but can rest assured that Arbab’s greed will not go unpunished.”

Arbab shall be sentenced in January 2020.

Must Read

The AP’s fact check of the Democratic debate

WASHINGTON (AP) — A dozen Democrats seeking the presidency tussled Tuesday night in a debate packed with policy, flubbing some details in the process.

Best Treatment for Aggressive Alzheimer’s Patients May Not Involve Medication

While the research to find better medicines to treat dementia continues, a new study indicates that some of the best ways to treat the agitation dementia patients often exhibit may not involve medicine at all.

Elizabeth Warren catches flak for her Medicare-for-All answer

It’s a question that increasingly nags Sen. Elizabeth Warren: Would she raise middle-class taxes to pay for Medicare-for-All?

Schilling won’t run for Arizona congressional seat

PHOENIX (AP) — Former major league pitcher Curt Schilling says he’s decided not to run for Congress.

AP FACT CHECK: Claims from the Democratic debate

WASHINGTON (AP) — Twelve Democrats seeking the presidency tussled Tuesday night in a wide-ranging debate featuring the largest number of qualifying candidates on the same stage.