Desai fined over $100,000 also for wire fraud.
By The American Bazaar Staff
WASHINGTON, DC: Shreyans Desai, 27, the former president of the Iselin, New Jersey-based Shreysiddh Capital LLC, who had pleaded guilty in May to wire fraud charges, has been sentenced to 15 months in prison for defrauding investors out of more than $250,000.
Federal prosecutors say Desai will also have to serve three years of supervised release and pay $121,250 in restitution under the sentence imposed Wednesday, the Associated Press reported.
Desai had pleaded guilty in May before U.S. District Judge William J. Martini in Newark federal court to counts one and two of a superseding indictment charging him with wire fraud. The Department of Justice had noted that the third count in the indictment, securities fraud, will be dismissed after Desai is sentenced.
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.