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Published On: September 23, 2013Categories: Litigation, Securities and Investor

Investor Litigation | Ponzi Scheme Cover Up Lands Lawyer in Jail

David Tammam, 46, was convicted and sentenced in California Federal Court for covering up a former client’s $22 million ponzi scheme and impeding the government’s investigation into it. Tammam’s sentence was radically enhanced due to the lies he told investigators and then again repeated under oath during his trial.

The ponzi scheme was run by a Persian-American businessman in L.A. named John Farahi. He was a radio host, dispensing investment advice and ran an investment advisory, New Point Financial Services. Of the $21 plus million than Farahi lost his clients, most of it was lost in high-risk trading schemes-which he also never disclosed to his clients. Farahi was shut down in 2010 by the SEC.

This is just another in a long line of cases–Madoff, Sanford, Peragrine–where self-annointed investment gurus cover up their fallability and failures with lies. A sad ending indeed