Rediff.com« Back to articlePrint this article

Indian-American sentenced to jail in $12.5 mn fraud case

May 14, 2009 12:04 IST

An Indian-American investment advisor has been sentenced to 10 years in prison following his conviction on 20 counts of fraud in connection with a scheme, which bilked 15 investors of approximately $12.5 million.

Amit Mathur, a resident of Shrewsbury in Massachusetts, was sentenced on May 12 by the Federal District Court in Worcester following his conviction on 18 counts of mail fraud and two counts of wire fraud, the Boston Office of the Federal Bureau of InvestigationĀ said.

The 38-year-old Indian-American has also been asked to pay restitution to his victims, the FBI said.

Mathur held himself out as a fantastically successful investment adviser operating a firm in Worcester known as Entrust Capital Management, Inc. During that period, he received approximately $16 million from investors.

According to evidence presented at trial, Mathur told investors -- in person and in marketing literature -- that Entrust was operating a hedge fund that consistently achieved positive rates of return and did better than the general stock market indices.

Lalit K Jha in Washington
© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.