L.A. real estate mogul and investment guru charged with fraud

Namvar accused of stealing $23M from clients to pay off other investors; bigwig in Persian Jewish community
SEP 15, 2010
By  John Goff
Ezri Namvar, a Los Angeles businessman whose hotel and investment companies filed for bankruptcy protection, was indicted on charges of stealing about $23 million from clients who allowed his firm to hold their money before it was reinvested in real estate, the U.S. said. The federal grand jury indictment alleges that five people agreed to have their money deposited with Namvar's Namco Financial Exchange Corp., which held itself out to be a “qualified intermediary” for real estate transactions called 1031 exchanges, the Los Angeles U.S. Attorney's Office said today in an e-mailed statement. Namvar, 59, and another defendant used the money to pay off creditors and investors in Namvar's investment company, Namco Capital Group Inc., according to the statement. He was charged with five counts of wire fraud. Each count carries a maximum sentence of 20 years in federal prison. Marc Harris, Namvar's attorney, didn't immediately return a phone message left at his office. Through his attorney, Namvar agreed to surrender on the morning of Sept. 27, prosecutors said. Namvar owned LA Hotel Venture LLC, owner of the downtown Los Angeles Marriott Hotel. The company filed for bankruptcy in April 2009. Namvar and Namco Capital were forced into bankruptcy after investors filed involuntary petitions against them in December 2008. Namvar is also being sued for hundreds of millions of dollars owed investors in Los Angeles' Persian Jewish community and banks that guaranteed loans to him, said A. David Youssefyeh, a lawyer representing 20 clients with claims against Namvar. Investors gave Namvar amounts ranging from $10,000 to millions on promises that they would receive above-market returns, said Youssefyeh in a telephone interview today.

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.