L.A. radio host accused of scamming investors to the tune of $20M

The host of a radio business program is accused of taking part in a $20 million investment fraud targeting Iranian-Americans in the Los Angeles area.
JAN 06, 2010
The host of a radio business program is accused of taking part in a $20 million investment fraud targeting Iranian-Americans in the Los Angeles area. The Securities and Exchange Commission announced Monday that it's suing NewPoint Financial Services Inc., its two co-owners and its controller. The SEC got a court order freezing the company's assets. Federal officials say NewPoint co-owner John Farahi marketed the scheme while hosting a daily Persian-language business program on radio station KIRN. The SEC claims more than 100 people invested but most of the money wound up in executives' accounts. Some allegedly was used to build a mansion, and more than $18 million was lost on risky options trading. Farahi's attorney, Gary Lincenberg, declined to comment on the lawsuit.

Latest News

Modera, Simplicity announce new acquisitions in busy day for industry M&A
Modera, Simplicity announce new acquisitions in busy day for industry M&A

Two RIAs expand their geographic footprints with deals in New York's Capital Region and coastal Alabama.

Advisor moves: Ameriprise, Prospera, Raymond James land teams with $920M in assets
Advisor moves: Ameriprise, Prospera, Raymond James land teams with $920M in assets

A 27-year Merrill veteran, Florida advisors, and a trio of New Jersey advisors just moved to new platforms.

LPL Research launches 17 model portfolios, hitting $100B in AUM
LPL Research launches 17 model portfolios, hitting $100B in AUM

Broker-dealer expands its model portfolio platform with modular building block strategies designed to give advisors greater customization at scale.

Wealth Enhancement adds $592M Chicago-area RIA
Wealth Enhancement adds $592M Chicago-area RIA

The mega-RIA with roughly $160 billion in client assets remains firmly in acquisition mode amid rumors of private equity giants vying to scoop it up.

Annuity sales hit a record as war and Fed jitters redraw fixed income
Annuity sales hit a record as war and Fed jitters redraw fixed income

Record annuity demand for principal protection collides with the most hawkish Fed dissent since 2016.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income