California Resident Syed Madad Accused of Fraudulent Scheme
Syed Qaisar Madad, CEO and co-owner of Technology for Telecommunication and Multimedia Inc. (TTM), was charged with operating an investment scheme in which he raised $49 million. Madad lost part of his investors’ money in bad trades and spent millions on Ponzi-like payments and personal expenses, according to the federal prosecutors’ charges.
Madad, a California resident, falsely promised his investors that his trading method would yield considerable profits, the federal prosecutors alleged. The investors were told that their money would be safe and returned to them on demand, according to the indictment.
In fact, Madad was operating a Ponzi scheme, using investors’ money to repay other investors, the indictment alleges. He was accused of using millions of investors’ money to pay for his personal expenses, such as gambling and his wife’s business expenses even though he said no fees or compensation was required for managing the invested funds.
Madad also gave FBI fraudulent documents stating that these were brokerage statements for UBS accounts in Switzerland, according to the prosecutors. He is also accused of tax fraud for omitting to declare all the money and benefits he received from TTM in 2007, 2008 and 2009.
Madad’s alleged scheme was discovered when one of his investors filed a lawsuit. However, this didn’t stop Madad from asking customers to invest in his scheme, the authorities allege.
Should he be convicted on all charges, Madad could face up to 260 years in federal prison.
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