SAN FRANCISCO – Krittibas Ray pleaded guilty in federal court in San Francisco today to two counts of wire fraud resulting from his operation of a multimillion dollar fraudulent investment scheme, United States Attorney Melinda Haag announced.
In pleading guilty, Ray admitted to enticing victims to invest in hedge funds he operated by falsely telling them that by placing funds into banks in India he could guarantee returns of 7 to 8.5 percent and that the hedge funds he was operating were profitable. In addition, Ray admitted that he failed to disclose to investors that he was using their money for personal expenses and to pay other investors, and that the gains he reported to investors were false.
Ray admitted that he received approximately $3.3 million from investors between February 2008 and December 2011, and that his fraudulent scheme caused more than $2.5 million of losses.
Ray, 43, of Albany, Calif., was arrested on Dec. 16, 2011, after he was charged by Criminal Complaint. On Dec. 29, 2011, a federal grand jury indicted Ray on two counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of money laundering, in violation of Title 18, United States Code, Section 1957. According to the plea agreement, Ray pleaded guilty to both wire fraud counts.
Ray has been in custody since his arrest. He is scheduled to be sentenced on June 15, 2012, at 11 a.m., before United States District Court Judge Susan Illston in San Francisco. The maximum statutory penalty for each count of wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000 and restitution. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
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