The former president of a New Jersey investment company was sentenced on Dec. 3 to 15 months in prison for defrauding investors out of more than $250,000.
Shreyans Desai, president of the Iselin-based Shreysiddh Capital LLC, will also have to serve three years of supervised release and pay $121,250 in restitution.
The 27-year-old Edison resident, had pleaded guilty in May to two counts of wire fraud. A third count in the indictment, securities fraud, was dismissed after U.S. District Judge William J. Martini imposed the sentence in Newark federal court.
According to documents filed in the case and statements made in court, Desai misled a number of investors about his licensing status and the registration status of the company to induce them to entrust their money to him so that he could trade securities on their behalf.
Desai then sought to retain control of the funds by providing investors with an inflated value of their investments and also inflated the amount of commissions he purportedly earned through trading those funds, a press release issued by the FBI said.
This story originally appeared on News India Times.
