LOS ANGELES (CN) - Investment manager and "radio personality" John Farahi was sentenced Monday to 10 years in federal prison for running a $24 million bond scam.
Farahi, 56, of Bel Air Estates, ran Beverly Hills-based New Point Financial Services and had a radio show on KIRN-AM. He also was ordered to pay $24,366,617 in restitution to 59 victims.
Farahi pleaded guilty to four felonies in June 2012: mail fraud, loan fraud, selling unregistered securities and conspiring to obstruct justice.
He collaborated with his corporate counsel to cover up the fraud, the U.S. Attorney's Office said in a statement announcing his sentencing.
Farahi admitted in his plea agreement that his scam cost victims more than $7 million, but prosecutors showed that the actual losses were more than $24 million.
Farahi claimed he would use his suckers' money to buy corporate bonds backed by the Troubled Assets Relief Program, but used it to make Ponzi payments and for other unrelated things.
His outside counsel, David Tamman, 46, of Santa Monica, was convicted of 10 counts last year, including obstruction of justice, altering records in a federal investigation, and being an accessory after the fact to Farahi's crimes.
Tamman, a partner at (nonparty) Nixon Peabody, was suspended by the California Bar and will be sentenced on May 20.
The SEC sued Farahi and New Point in January 2010, and eventually froze his assets and appointed a receiver for New Point.
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