Amit Mathur jailed 10 years for bilking 15 investors of $12.5
Boston, MA, May 13m 2009
NRI Amit Mathur,
38, investment adviser, Shrewsbury, has been sentenced to 10 years
in federal prison for swindling clients for over $12 million. He
was convicted of 20 counts of mail, wire fraud and stealing or misappropriating
funds from clients. After two-week trial, federal prosecutors sought
the maximum sentence of 17-1/2 years
Amit's attorney Vivian Shevitz asked that her client be sentenced
to the one year he has already served in a federal detention facility.
Amit Mathur’s motion for a new trial and sentenced was rejected
by a federal judge.
According to the indictment:
- Mathur stole the materials copying Entrust Northeast's website
and convince investors about the pedigree of his firm
- He thought he was going to close down his little hedge fund
company by showing large trading losses and legitimate losses.
- He made money with losing trades and 90% of the commission owed
to the brokerage doing the trades were kickbacked to Mathur.
- He convinced his investors by fake statements of return in his
- He stole some investors's money and invested in real estate
- Mathur's own uncle, Alok Mathur also lost about $530,000.
- David G. "Duddie" Massad a banker invested $13 million
from five investment clients and lost over $11 million
Amit is the only child of older parents. Mathur’s mother,
Dr. Usha Mathur was allowed to speak by judge. She
urged the judge to consider her and her husband in making his sentence.
We are both old. He’s our only child. We are lost without
Judge Saylor said:
- He arrived at a sentence four years shorter than the guideline
range of 14 to 17-1/2 years.
- In addition to the 10-year sentence, Mr. Mathur will have to
serve three years of probation after he is released.
- He agreed to recommend that he be locked up as close to Worcester
as possible for the sake of his parents.
Judge Saylor said, "I cannot imagine how cold and callous
you could be to deprive a family member of every penny they spent
their entire lives earning."
CONVICTED IN $13 MILLION INVESTMENT FRAUD SCHEME
The United States Attorney's Office
May 20, 2008
Kulbir Singh reports
SHREWSBURY MAN CONVICTED IN $13 MILLION INVESTMENT FRAUD SCHEME
. A Shrewsbury investment adviser was convicted of 20 counts of
fraud in Federal District Court in Worcester on Friday, May 16,
2008 in connection with a scheme that bilked 15 investors of approximately
United States Attorney Michael J. Sullivan; Bruce M. Foucart, Special
Agent in Charge, U.S. Immigration and Customs Enforcement; and Kenneth
W. Kaiser, Special Agent in Charge, Federal Bureau of Investigation,
announced today that AMIT MATHUR, age 38, of 3 Sunflower Circle,
Shrewsbury, Massachusetts, was convicted of 18 counts of mail and
two counts of wire fraud.
According to the evidence presented at trial, MATHUR held himself
out as a fantastically successful investment adviser operating a
firm in Worcester known as Entrust Capital Management, Inc. (“Entrust”).
During that period, MATHUR received approximately $16 million from
investors. According to evidence presented at trial, MATHUR told
investors -- in person and in marketing literature -- that Entrust
was operating a hedge fund that consistently achieved positive rates
of return and did better than the general stock market indices.
In this way, MATHUR lulled his investors into a false sense of security
to persuade them to invest money and to leave their money with Entrust
for the long term. In fact, during its entire existence, according
to the evidence introduced at trial, the Entrust fund suffered consistent
losses. Moreover, in several instances, MATHUR never even invested
the money investors gave him. Instead, he misappropriated more than
$5 million of investors' money for his own personal use, including
luxury items such as several cars, gambling, New England Patriots
football season tickets, jewelry, and clothing.
On each count for which he was convicted, MATHUR faces a maximum
sentence of 20 years in prison, a fine of $250,000, and restitution
to the victims.
The case was investigated by U.S. Immigration and Customs Enforcement
and the Federal Bureau of Investigation. The U.S. Attorney’s
Office also wishes to acknowledge the efforts of the Securities
and Exchange Commission in Boston in providing cooperation during
the investigation of this case. The prosecution was being handled
by Assistant U.S. Attorney John A. Capin in Sullivan’s Economic