SEC v. Jilbert Tahmazian, Esq., No. LR-23633, Central District of California (Sept. 1, 2016) — Press Release
raw: Jilbert Tahmazian, Esq.
Jilbert Tahmazian, Esq., No. 2:16-CV-954 (Sept. 1, 2016)
The SEC charged California attorney Jilbert Tahmazian for his participation in a "prime bank" fraud scheme that defrauded four investors of approximately $6 million through fictitious investment contr
The SEC charged California attorney Jilbert Tahmazian for his participation in a "prime bank" fraud scheme that defrauded four investors of approximately $6 million through fictitious investment contracts. Tahmazian allegedly promised investors weekly returns of 15% to 30%, but instead diverted funds to clients who spent the money on luxury retail and Las Vegas casinos after Tahmazian retained a 2% fee. To settle the antifraud action, Tahmazian agreed to a final judgment requiring him to pay $196,524 in disgorgement, interest, and civil penalties. Additionally, Tahmazian consented to a permanent suspension from appearing and practicing before the SEC as an attorney.
The SEC charged California attorney Jilbert Tahmazian for his participation in a "prime bank" fraud scheme that defrauded four investors of approximately $6 million through fictitious investment contracts. Tahmazian allegedly promised investors weekly returns of 15% to 30%, but instead diverted funds to clients who spent the money on luxury retail and Las Vegas casinos after Tahmazian retained a 2% fee. To settle the antifraud action, Tahmazian agreed to a final judgment requiring him to pay $196,524 in disgorgement, interest, and civil penalties. Additionally, Tahmazian consented to a permanent suspension from appearing and practicing before the SEC as an attorney. California attorney Jilbert Tahmazian settled SEC charges for his role in a $6 million “prime bank” fraud scheme from 2009 to 2010, in which he and two clients misled four investors with promises of 15%–30% weekly returns on fictitious investment contracts. Investors’ funds were never invested; instead, Tahmazian kept a 2% fee and funneled the rest to associates who spent it on casinos and luxury goods. Without admitting or denying guilt, Tahmazian agreed to a court judgment imposing $196,524 in total penalties—$40,000 in disgorgement, $6,524 in prejudgment interest, and a $150,000 civil penalty—along with a permanent injunction barring violations of key securities antifraud provisions. In a related administrative proceeding, he was permanently suspended from practicing before the SEC, prohibiting him from representing clients in any SEC matters or advising on SEC filings. California attorney Jilbert Tahmazian settled SEC charges for his role in a $6 million “prime bank” fraud scheme from 2009 to 2010, in which he and two clients misled four investors with promises of 15%–30% weekly returns on fictitious investment contracts. Investors’ funds were never invested; instead, Tahmazian kept a 2% fee and routed the rest to clients who squandered it on casinos and luxury goods. Without admitting or denying guilt, Tahmazian agreed to a court judgment imposing $196,524 in total penalties—$40,000 in disgorgement, $6,524 in prejudgment interest, and a $150,000 civil penalty—and a permanent injunction barring him from violating key securities antifraud provisions. In a related administrative action, he was permanently suspended from practicing before the SEC, prohibiting him from representing clients in any SEC matters or advising on SEC filings.
Extracted insights
- $6.00M $6 million $1M–$10M
- $197K $196,524 $100K–$1M
- $150K $150,000 $100K–$1M
- $40K $40,000 $10K–$100K
- $7K $6,524 <$10K
- person jilbert tahmazian
- person prime bank fraud scheme
- agency sec charges
- court u.s. district court
- organization U.S. District Court
- court u.s. district court for the central district of california
- organization U.S. District Court For The Central District Of California
- Jilbert Tahmazian settles SEC charges
- U.S. District Court entered final judgment against Jilbert Tahmazian
- Jilbert Tahmazian participated in Prime Bank Fraud Scheme
- Jilbert Tahmazian ordered to pay $196,524
- Jilbert Tahmazian participated in Prime Bank fraud scheme
- U.S. District Court for the Central District of California ordered Jilbert Tahmazian to pay $196,524
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23633 / September 1, 2016 Securities and Exchange Commission v. Jilbert Tahmazian, Esq., Case No. 2:16-CV-954 (C.D. Cal. filed February 11, 2016); In the Matter of Jilbert Tahmazian, Esq., Administrative Proceeding No. 3-17524 (Sept. 1, 2016) California Attorney Settles SEC Charges That He Participated in Prime Bank Fraud Scheme On August 26, 2016, the U.S. District Court for the Central District of California entered a final judgment against Jilbert Tahmazian, an attorney licensed in California, ordering him to pay $196,524 to settle an antifraud action filed by the SEC. The SEC's complaint alleged that, from at least mid-2009 through at least December 2010, Tahmazian and two of his clients engaged in a fraudulent, "prime bank" scheme and obtained approximately $6 million from four investors who invested in fictitious investment contracts. According to the complaint, investors were promised that they would receive a return of 15% to 30% per week from their investment and that if the funds were not invested within 15 to 30 days, they would receive a refund of their investment plus a 2% penalty. To the contrary, investors' funds were neither invested nor returned as promised. Instead, after keeping a 2% fee for himself, Tahmazian transferred the money to his clients and others, who in turn spent it at Las Vegas casinos and high-end retail stores. Without admitting or denying the facts as alleged, Tahmazian consented to the entry of a final judgment that permanently enjoins him from violating Sections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rules 10b-5(a) and (c) thereunder, and orders him to disgorge ill-gotten gains of $40,000 plus prejudgment interest of $6,524, and pay a civil penalty of $150,000. As a result of the injunction, in a related settled administrative proceeding instituted today, Tahmazian agreed to the entry of an order permanently suspending him from appearing and practicing before the SEC as an attorney. The order prohibits Tahmazian from representing clients in SEC matters, including investigations, litigation, or examinations, and from advising clients about SEC filing obligations or content. For further information on this action, please see Litigation Release No. 23465 (Feb. 11, 2016).
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23633 / September 1, 2016 Securities and Exchange Commission v. Jilbert Tahmazian, Esq., Case No. 2:16-CV-954 (C.D. Cal. filed February 11, 2016); In the Matter of Jilbert Tahmazian, Esq., Administrative Proceeding No. 3-17524 (Sept. 1, 2016) California Attorney Settles SEC Charges That He Participated in Prime Bank Fraud Scheme On August 26, 2016, the U.S. District Court for the Central District of California entered a final judgment against Jilbert Tahmazian, an attorney licensed in California, ordering him to pay $196,524 to settle an antifraud action filed by the SEC. The SEC's complaint alleged that, from at least mid-2009 through at least December 2010, Tahmazian and two of his clients engaged in a fraudulent, "prime bank" scheme and obtained approximately $6 million from four investors who invested in fictitious investment contracts. According to the complaint, investors were promised that they would receive a return of 15% to 30% per week from their investment and that if the funds were not invested within 15 to 30 days, they would receive a refund of their investment plus a 2% penalty. To the contrary, investors' funds were neither invested nor returned as promised. Instead, after keeping a 2% fee for himself, Tahmazian transferred the money to his clients and others, who in turn spent it at Las Vegas casinos and high-end retail stores. Without admitting or denying the facts as alleged, Tahmazian consented to the entry of a final judgment that permanently enjoins him from violating Sections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rules 10b-5(a) and (c) thereunder, and orders him to disgorge ill-gotten gains of $40,000 plus prejudgment interest of $6,524, and pay a civil penalty of $150,000. As a result of the injunction, in a related settled administrative proceeding instituted today, Tahmazian agreed to the entry of an order permanently suspending him from appearing and practicing before the SEC as an attorney. The order prohibits Tahmazian from representing clients in SEC matters, including investigations, litigation, or examinations, and from advising clients about SEC filing obligations or content. For further information on this action, please see Litigation Release No. 23465 (Feb. 11, 2016).