2016-02-11 sec-litreleases litigation_release 65 KB 1,831 chars

SEC v. Jilbert Tahmazian, No. LR-23465, Central District of California (Feb. 11, 2016) — Press Release

raw: Jilbert Tahmazian

Jilbert Tahmazian, No. 2:16-CV-954 (Feb. 11, 2016)

Caption
Securities and Exchange Commission v. Jilbert Tahmazian
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summary

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The U.S. Securities and Exchange Commission charged California attorney Jilbert Tahmazian with fraud for orchestrating a prime bank scheme that defrauded at least four investors of approximately $6 million between mid-2009 and December 2010. Tahmazian promised investors unrealistic weekly returns of 15% to 30% and guaranteed refunds with penalties if funds weren’t invested within 30 days, but he never invested any of the money. Instead, he siphoned funds from his attorney trust account, keeping a substantial portion for himself and transferring the rest to others who spent it on Las Vegas casinos and luxury retail. The SEC alleged violations of Sections 10(b), 5(a), 5(c), and 17(a) of the federal securities laws, and the litigation is being led by Alfred A. Day, with the investigation conducted by SEC staff.

narrative

The U.S. Securities and Exchange Commission charged California attorney Jilbert Tahmazian with fraud for orchestrating a prime bank scheme that defrauded at least four investors of approximately $6 million between mid-2009 and December 2010. Tahmazian promised investors unrealistic weekly returns of 15% to 30% and guaranteed refunds with penalties if funds weren’t invested within 30 days, but he never invested any of the money. Instead, he siphoned funds from his attorney trust account, keeping a substantial portion for himself and transferring the rest to others who spent it on Las Vegas casinos and luxury retail. The SEC alleged violations of Sections 10(b), 5(a), 5(c), and 17(a) of the federal securities laws, and the litigation is being led by Alfred A. Day, with the investigation conducted by SEC staff. The U.S. Securities and Exchange Commission charged California attorney Jilbert Tahmazian with fraud for orchestrating a prime bank scheme that defrauded at least four investors of approximately $6 million between mid-2009 and December 2010. Tahmazian promised unrealistic weekly returns of 15% to 30% and guaranteed refunds with penalties if funds weren’t invested, but he never invested any money—instead diverting it to his attorney trust account, keeping a large fee, and funneling the rest to others who spent it on Las Vegas casinos and luxury retail. The SEC alleged violations of Sections 10(b), 5(a), 5(c), and 17(a) of the federal securities laws, citing deceitful misrepresentations and unregistered securities offerings. The case was filed in federal court in California, with litigation led by Alfred A. Day, and the investigation conducted by SEC staff Ansu Banerjee and Delane Olson.

Enriched metadata

Scheme
advance-fee (90%)
Court
Central District of California
Case No.
2:16-CV-954
Victim loss
$6,000,000
Entity
Jilbert Tahmazian
Classified advance-fee(confidence 90%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Statutes
Sections 5(a) and (c) of the Securities ActSections 17(a)(1) and (3) of the Securities ActSections 17(a)(1) and (3) of the Securities ActSections 17(a)(1) and (3) of the Securities Act
Parties
Securities and Exchange CommissionJilbert Tahmazian
Keywords
tahmazianjilbert tahmaziansecurities exchangeexchange commissioninvestment contractssecuritiesinvestmentjilbertexchangecommission jilbertcalifornia fraudfraud engagingengaging primeprime bankbank scheme

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 1
  • $6.00M $6 million $1M–$10M
Entities 1
  • person jilbert tahmazian
Triples 5
  • Jilbert Tahmazian charged with fraud for engaging in a prime bank scheme
  • SEC filed complaint alleging Jilbert Tahmazian fraudulently obtained funds from at least mid-2009 through December 2010
  • Jilbert Tahmazian charged with fraud for engaging in a prime bank scheme
  • SEC charged Jilbert Tahmazian, a California attorney
  • Jilbert Tahmazian fraudulently obtained funds through a prime bank scheme from at least mid-2009 through December 2010
PDF (from attached: complaint)
JOHN W. BERRY, Lead Counsel (Cal. Bar. No. 295760) · Source
Text layers
Extracted body text (1,831c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23465 / February 11, 2016 Securities and Exchange Commission v. Jilbert Tahmazian, Civil Action No. 2:16-CV-954 (C.D. Cal. filed Feb. 11, 2016) SEC Charges California Attorney with Fraud for Engaging in a Prime Bank Scheme The Securities and Exchange Commission today charged Jilbert Tahmazian, a lawyer licensed in the state of California, with fraud for engaging in a prime bank scheme. The SEC's complaint, filed in federal court in California, alleges that: From at least mid-2009 through at least December 2010, Tahmazian fraudulently obtained approximately $6 million from at least four unsuspecting investors through bogus investment contracts. Under the terms of the fraudulent investment contracts, investors were promised that they would receive a return of 15% to 30% per week from their investment. If the investors' money was not invested within 15 to 30 days, they were promised a refund of their investment plus a 2% penalty. The funds were deposited in Tahmazian's attorney trust account with the understanding that they would be used to invest in the fraudulent investment contracts. However, Tahmazian never invested the investors' funds. Instead Tahmazian retained a substantial fee for himself and transferred the remainder from his trust account to others, who in turn spent it at Las Vegas casinos and high-end retail stores. The SEC's complaint charges Tahmazian with violations of Section 10(b) of the Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder, Sections 5(a) and (c) of the Securities Act of 1933 and Sections 17(a)(1) and (3) of the Securities Act. The SEC's continuing investigation was conducted by Ansu Banerjee and Delane Olson, and supervised by Melissa Hodgman. The litigation will be led by Alfred A. Day. SEC Complaint
OCR text (1,831c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23465 / February 11, 2016 Securities and Exchange Commission v. Jilbert Tahmazian, Civil Action No. 2:16-CV-954 (C.D. Cal. filed Feb. 11, 2016) SEC Charges California Attorney with Fraud for Engaging in a Prime Bank Scheme The Securities and Exchange Commission today charged Jilbert Tahmazian, a lawyer licensed in the state of California, with fraud for engaging in a prime bank scheme. The SEC's complaint, filed in federal court in California, alleges that: From at least mid-2009 through at least December 2010, Tahmazian fraudulently obtained approximately $6 million from at least four unsuspecting investors through bogus investment contracts. Under the terms of the fraudulent investment contracts, investors were promised that they would receive a return of 15% to 30% per week from their investment. If the investors' money was not invested within 15 to 30 days, they were promised a refund of their investment plus a 2% penalty. The funds were deposited in Tahmazian's attorney trust account with the understanding that they would be used to invest in the fraudulent investment contracts. However, Tahmazian never invested the investors' funds. Instead Tahmazian retained a substantial fee for himself and transferred the remainder from his trust account to others, who in turn spent it at Las Vegas casinos and high-end retail stores. The SEC's complaint charges Tahmazian with violations of Section 10(b) of the Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder, Sections 5(a) and (c) of the Securities Act of 1933 and Sections 17(a)(1) and (3) of the Securities Act. The SEC's continuing investigation was conducted by Ansu Banerjee and Delane Olson, and supervised by Melissa Hodgman. The litigation will be led by Alfred A. Day. SEC Complaint

Related documents (1)