Jury Convicts San Diego Man in $35 Million Dollar Securities Fraud and COVID-Relief Fraud Scheme; Brevard Political Consultant Pleads Guilty to Fraud in PPP Loan Case, and other C-Virus related stories
Jury Convicts San Diego Man in $35 Million Dollar Securities Fraud and COVID-Relief Fraud Scheme:
After an eight-day trial, a federal jury has convicted Denny Thakorbhai Bhakta on all 25 counts of securities fraud, bank fraud and money laundering in connection with a $35 million dollar investment fraud scheme and COVID-relief fraud scheme.
Bhakta’s uncle, who was swindled out of $4.5 million, testified during the trial that he came to the U.S. as an immigrant, with only a suitcase and $8 in his pocket, and because of the defendant, he “lost everything he had worked for in 57 years in America. Everything.” Bhatka’s fraud scheme targeting numerous victims, including a childhood friend who lost hundreds of thousands of dollars; a friend of his family who lost $1.6 million; a high school classmate and her father who together lost more than $800,000; a cousin who lost $40,000; and an 88-year-old investor who was defrauded out of $50,000.
“This sophisticated scheme unraveled after several victims came forward and exposed the fraud,” said U.S. Attorney Tara McGrath. “Many of the victims are people who represent the best of us—hard working, honest Americans who made investments based on a trusted relationship. The jury’s verdict is a resounding affirmation that justice will prevail over deceit.”
The evidence at trial showed Bhakta solicited investors in his companies Fusion Hotel Management LLC and Fusion Hospitality Corporation (collectively “Fusion”). Between at least 2016 and up to 2021, Bhakta falsely told investors that Fusion routinely acquired discounted blocks of hotel rooms from Hilton, which Fusion then sold to United Airlines and other companies at a higher price for a significant profit. To support these lies, Bhakta provided fabricated bank statements, fake contracts, and profit and loss statements purporting to show millions in revenue and profit. Instead of buying blocks of hotel rooms with investors’ funds, however, Bhakta used the money he obtained from investors for gambling, to make Ponzi-style payments to other investors, and to pay for Bhakta’s personal expenses, including a Mercedez-Benz S-Class and a Porsche 911 Turbo S. —>READ MORE HERE
Brevard political consultant pleads guilty to fraud in PPP loan case:
A Brevard County political consultant has pleaded guilty to scheming to defraud a federal pandemic-era relief program.
Robert Burns, who also owns and runs the Space Coast Rocket local news website, entered the plea in an Oct. 28 court session, stating in a plea agreement that he submitted phony tax documents to obtain more than $57,000 in small business loans through the Paycheck Protection Program, according to court documents.
The charge of felony wire fraud carries a maximum sentence of up to 20 years in prison and a $250,000 fine, according to the agreement. Defendants convicted in similar cases have typically received far less.
Burns declined comment for this story. Sentencing in the case is set for Jan. 22 next year.
In the 22-page agreement, Burns and his attorney admitted that Burns obtained three loans totaling $57,186 through fraudulent means between April and June, 2020, and did not spend on the money on its intended purpose.
As part of the scheme, Burns submitted falsified Internal Revenue Service tax documents that inflated his annual income in order to obtain larger loan amounts through the program, the plea agreement said. The IRS had no tax record on file for Burns or his business in 2020, federal investigators found. —>READ MORE HERE
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