Iranian-Americans Targeted In Beverly Hills Investment- And Affinty-Fraud Scheme, SEC Says; Debentures Program Allegedly Pitched On Persian-Language Radio Show

UPDATED 7:03 P.M. ET (U.S.A. JAN. 12) A Beverly Hills radio host pitched his fraud scheme in Persian and targeted Iranian-Americans in Greater Los Angeles, the SEC said today.

Client funds were used to build a mansion for John Farahi, 52, and and his wife, Gissou Rastegar Farahi, 50, the agency said. Client funds also were transferred to the Farahi Family Trust. John Farahi hosts the daily radio program.

Named defendants in the case were the Farahis, Beverly Hills-based NewPoint Financial Services Inc. and Elaheh Amouei, 54. The SEC identified Amouei as NewPoint’s controller and the “personal bookkeeper” of the Farahis.

A company named Triple “J” Plus LLC operated by John Farahi was named a relief defendant. John and Gissou Farahi have control over the Triple “J” bank accounts, the SEC said.

“They lured victims with false promises of investment safety while secretly enriching themselves and diverting investor funds for their personal use,” said Rosalind R. Tyson, director of the SEC’s Los Angeles Regional Office.

All of the defendants’ assets have been frozen in the case, which includes allegations that clients were told they were investing in FDIC-insured certificates of deposit, government bonds or corporate bonds issued by companies backed by funds from the Troubled Asset Relief Program (TARP).

TARP is the $700-billion program operated by the Treasury Department to shore up banks.

“The vast majority of the money raised was transferred to accounts held by Defendants John and Gissou Farahi,” the SEC said in its complaint. “John and Gissou Farahi, in tum, used the investor funds to, among other things, construct a multi-million dollar personal residence in Beverly Hills, California and to engage in risky options futures trading in the stock market in which . . . John and Gissou Farahi lost more than $18 million in 2008 and the beginning of 2009.”

Investors were asked to invest in the debentures by the Farahis and/or Elaheh Amouei, NewPoint’s controller, after making an appointment to discuss investment opportunities offered by NewPoint, the SEC said.

Since at least 2003, NewPoint has sold more than $20 million worth of debentures to more than 100 investors. Clients were told their investments were low-risk, the SEC said.

At some point, NewPoint prepared Private Placement Memoranda (PPM) literature describing the opportunity as high risk, but most investors said they never received the material, the SEC said. Investors also did not know that they were making loans to John Farahi.

“[N]ot only did Defendants John and Gissou Farahi and/or Defendant Amouei fail to provide the PPMs to most investors, it appears that they only added the disclosure regarding loans to Defendant John Farahi in 2009, after the offering ceased, the SEC said.

“[T]he vast majority of the money raised was actually transferred to accounts controlled by the Farahis, including an account at relief defendant Triple ‘J,'” the SEC said.

Beginning roughly in June 2009, the SEC said, John Farahi and Amouei “made further misrepresentations to investors in an effort to lull them into keeping their money with NewPoint.

“Investors have allegedly been told that their money is safe and that they are guaranteed to get the entirety of their investment back — despite the fact that NewPoint lacks sufficient funds to make all investors whole,” the SEC said. “John Farahi has also paid back some investors on a selective basis while failing to return money to other investors who have asked for a return of their investment.”

Amouei, accordring to the SEC, “falsely told some of the investors who have not received a return of their investment that NewPoint was unable to return their money because the Commission has frozen NewPoint’s financial accounts.”

The NewPoint case in California became the second fraud case since November in which a radio show allegedly was used to pitch a fraudulent  investment program.

Christian radio host Pat Kiley of Minnesota was accused by the SEC and the CFTC in November of promoting a $190 million Ponzi scheme with Trevor Cook, who reportedly used some of the proceeds to buy a submarine to access a private island he bought in Canada.

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16 Responses to “Iranian-Americans Targeted In Beverly Hills Investment- And Affinty-Fraud Scheme, SEC Says; Debentures Program Allegedly Pitched On Persian-Language Radio Show”

  1. These mini Madofs like to gamble with other peoples money if they come out winner they are smart and if they loose they just say I am sorry,

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  2. I hope the SEC gets to the bottom of this one and takes back and liquidates all the ill gotten gains from scammers. The house, the cars, the accounts, all of it. They will soon feel how these investors did when they lose what they have

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  3. This guy is fuckng stupid and fucked up. should be locked up forr life!!

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  4. I used to listen to him from my store his program was for an hour from one pm to two pm this guy came as a such a nice person helping everybody with nthere financial needs thind all the money gentelman would start his program by answering to his listerns qauestion and he use to give a siminar every year and donates all the money to cancer society what a nice guy asshole who are you fouling i hope they take away everything from him including the mansion a fuck you ass hole

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  5. Is it possible dig out about these pepole from about 50 years a go till now who they are what they did he has bad record in Reno,NV too and he been kiked out whom he was working with and who he was working for and how come they can go for many years with out being cut?

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  6. JOHN FARAHI WAS ONE OF THE TOP :RELATION: PERSON WHO WAS VEREY ACTIVE ON THE TOP OF IRANIAN AMERICAN JEW ORGANIZATION,VEREY POWERFULL RELATION ,AND HE WAS USING HIS POSATION TO STEEL MONY MOSTLY FROM IRANIAN JEW , I HOPE IT WILL BE A GOOD EXPERIENCE FOR IRANIAN JEW,DONT TRUST UR OWN PEOPLE WHO COME WITH RELATION UMBERELA AND TAKE UR MONY,,VEREY SIMILER TO MADOFFFFFFFFFFF

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  7. 1 person refered to Reno, Nevada….is this Farahi to the Iranian Jewish family Farahi that owns Atlantis casino/hotel complex?

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  8. I can answer all of your questions. Since I know the guy.
    I had no idea he was committing a fraud. He was never a nice guy
    he only cared about himself. He did the radio show as a promotion
    to convince people about his false investment. He had his employees work with no paid lunch and no insurance. That’s another fraud. During his radio shows he used that to have callers call him in order for him to steal there money. Thats smart but of course not for so long. I do believe the government needs to come up with a better system for people that do ponzi scheme. This is happened alot and it effectiong so many poeple. Also, he is the guy that ownes Atlantis hotel in Reno. For all of those Iranian Communities that got screwed by his ponzi bull shit scheme you guys all need to put in your compliant to the FBI in order for them to get a long time sense. Do not be afraid.

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  9. This guy should be locked up. Driving around in Beverly Hills in a Rolls Royce paid for with stolen money. And his kids Josh farahi and Justin farahi are no better.

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  10. I belive they should go after the radio 670 am as well because John Paily and especialy Sasan kamali are covering up for john Farrahi. If any one calls and asks a question about him Sasan will imidately shut them up. If you do not belive me just try it for yourselves. Now Mr Kamaly is covering up for another guy called Karim. Just for money these guys will do any thing.

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  11. S. Babakhani: I belive they should go after the radio 670 am as well because John Paily and especialy Sasan kamali are covering up for john Farrahi. If any one calls and asks a question about him Sasan will imidately shut them up. If you do not belive me just try it for yourselves. Now Mr Kamaly is covering up for another guy called Karim. Just for money these guys will do any thing.  

    The defendants have been charged, so, the case is now considered to be “sub judice” (under the control of the courts)

    Any public comment by the press or defendants, or, indeed, associates of the defendants, could jeopardize the case and result in a dismissal.

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  12. I worked for John & Gissou at Adventure Inn, they were the nicest people to me. For Clarification, He is not the guy who owns Atlantis Hotel Casino, that guy is his Uncle, a “john” also.

    I a was General Mgr of their establishment. Adventure Inn. I do remember that bank account, I was paid out of Triple J when working there

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  13. I am sure the Radio station that made 100.000 $ a year from him should be investigated. They heard our complains but did nothing about it. They cut off callers and told all their personel to shut up about it. The investors have the right to get their money from 670AM KIRN radio. This radio has made more than 50,million dollars of Iranian community of SC.

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  14. May be it is time to make the radio station that allowed him broadcast for 8 years knowing about all the complaints, responsible.
    Iranian community is a new , young, and rich community that trusted this radio station. Media has caused this and media should pay. I think the investors should go after Radio 670AM KIRN.

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  15. never trust anyone who has the same name as his uncle, son, cousin and brother. the farahi’s are a bunch of scam artists.

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