Portland Man Sentenced to 78 Months in Federal Prison After Admitting Role in Investment Fraud Scheme Involving More Than $6 Million
|U.S. Attorney’s Office September 23, 2013|
PORTLAND, OR—Honorable Ancer Haggerty, U.S. District Judge for the District of Oregon, sentenced Jusaf Jawed, age 44, of Portland, to 78 months in prison, three years of supervised release, and ordered him to make restitution to the victims of his fraudulent investment program in the amount of $6.47 million. Jawed had previously entered a guilty plea to five counts of mail fraud and 12 counts of wire fraud in connection with an investment fraud scheme he orchestrated in Oregon, Washington, California, and in other states.
The 17-count information filed by the U.S. Attorney’s office, to which Jawed pled guilty, alleges that from February 2008 through September 2009, Jawed raised approximately $6.47 million from over 10 investors in a hedge fund he controlled called Alpha Qualified Fund. Very little of the money was actually invested, and most of the money was diverted to other purposes, including the repayment of money owed to prior investors.
“In these uncertain economic times, it is vital that investors can seek advice from trusted advisors,” said U.S. Attorney Amanda Marshall. “When that trust is violated, the government will take strong measures to punish the financial predators and restore confidence in the financial system.”
During the sentencing hearing today, the government stated that Jawed had fulfilled a part of the plea agreement which required him to cooperate with the Securities and Exchange Commission, which had filed a lawsuit against him and with investors who had sued him. The government pointed out that Jawed’s cooperation helped to facilitate a financial recovery against other parties who had assisted him in perpetuating the scheme to defraud.
“This defendant lied to his clients—over and over again. He promised high returns and strong investments. In the end, the clients lost millions,” said Gregory Fowler, Special Agent in Charge for the FBI in Oregon. “We have a responsibility to make sure he faces justice while working to help the victims recover what funds they can.”
The case was investigated by the FBI, with the assistance of the Securities and Exchange Commission. Senior Litigation Counsel and Assistant U.S. Attorney Allan M. Garten prosecuted the case for the government.