Fund Manager Gets 10 Years For $20M Ponzi Scheme

Law360, Los Angeles (March 18, 2013, 8:03 PM EDT) -- A former Beverly Hills, Calif.-based investment fund manager was sentenced to 10 years in prison Monday for running a Ponzi scheme with an ex-Nixon Peabody LLP partner that bilked investors out of more than $20 million, and then lying to federal investigators about the plot.

John Farahi, 55, pled guilty in June to four felonies: mail fraud, loan fraud, unregistered offer and sale of securities, a conspiracy to obstruct justice.

At a Monday hearing, U.S. District Judge Philip S. Gutierrez sentenced Farahi to the decade-long term...
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