September 22, 2020 Breaking News, Latest News, and Videos

Century City Man Faces Decades Behind Bars For $3 Million Ponzi Scheme:

A Century City man faces the possibility of decades in federal prison when he is sentenced today for running a $3 million Ponzi scheme primarily targeting Iranian Jews living in the Southland.

Shervin Neman, whose given name is Shervin Davatgarzadeh, was found guilty at trial in May of two counts of wire fraud and one count of mail fraud.

The 33-year-old Neman claimed to be a successful investor who made significant profits, but actually he ran a Ponzi scheme from 2010 through 2013 by soliciting funds from investors with false claims that their money would be used to purchase foreclosed real estate and stocks.

Instead of using investor funds to make the promised investments, Neman spent most of his clients’ money on personal expenditures and to repay other victims.

The U.S. Securities and Exchange Commission filed a civil complaint against Neman and his company, Century City-based Neman Financial Inc., two years ago in Los Angeles federal court.

SEC documents show that Neman was operating a multimillion-dollar Ponzi scheme that was primarily targeting members of the Persian-Jewish community in the Los Angeles area. As a result, a federal judge issued orders prohibiting

Neman from committing securities fraud.

The month after the SEC sued Neman, he solicited $2 million from another victim with false promises that he could obtain pre-IPO shares in Facebook.

Neman used the funds obtained from the new victim to pay, among other things, most of his earlier victims and the law firm representing him in the SEC action.

Neman then had victims who had been “paid back” write emails saying that he did not owe them money and then tried to use those emails as part of his defense in the SEC case, according to prosecutors.

In June 2012, Neman sent the $2 million victim a check for $2,235,800, supposedly his investment into Facebook plus interest, but it bounced.

in News
Related Posts

Edify TV: Santa Monica Fire Department Fighting Blazes Across State

September 21, 2020

September 21, 2020

The Santa Monica Fire Department has been busy helping combat wildfires burning throughout the state. Learn more in this video...

Lawmakers and Residents Take Steps Towards Police Reform

September 21, 2020

September 21, 2020

Santa Monica residents will soon have more control of policing after local lawmakers took significant steps to reform the Santa...

2020 Census Due September 30th: Santa Monica Beat – September, 21, 2020

September 21, 2020

September 21, 2020

Local news and culture in under 5 minutes. * 2020 Census Due September 30th * Bobcat Fire Reaches Historical Size...

SMa.r.t. Column: Spending and Pension Policies Are Undermining Our City’s Future

September 21, 2020

September 21, 2020

Our guest columnist this week is Marc L. Verville. He is a native of Santa Monica, now lives in Sunset...

4.6 Quake Felt in Santa Monica

September 19, 2020

September 19, 2020

4.6 magnitude quake recorded Friday night By Sam Catanzaro A 4.6 magnitude earthquake struck the San Gabriel Valley Friday sending...

Edify TV: Miramar Santa Monica Redevelopment

September 18, 2020

September 18, 2020

The Santa Monica skyline may look different in the future with a major redevelopment of the Fairmont Miramar Hotel &...

‘Fresh Prince Of Bel Air’ Mansion For Rent On AirBnb

September 18, 2020

September 18, 2020

Today on Westside Cribz, 30th anniversary of “The Fresh Prince of Bel Air” Airbnb is renting out the mansion for...

SMMUSD Kindergarten Enrollment Down 20% : Santa Monica Beat – September, 17, 2020

September 17, 2020

September 17, 2020

Local news and culture in under 5 minutes. * SMMUSD Kindergarten Enrollment Down 20% * As Covid-19 Cases Drop Will...

Edify TV: Sit-down Dining Safety?

September 17, 2020

September 17, 2020

Despite a recent CDC report stating the risks of in-person dining, many Westside restaurant patrons feel the experience is safe....

Sur La Table Closing Santa Monica Location

September 16, 2020

September 16, 2020

1930s building listed for lease By Sam Catanzaro Sur La Table, the popular kitchenware retail chain, is closing its downtown...

Death by Suicide at Santa Monica Place

September 16, 2020

September 16, 2020

Man dies by suicide Wednesday morning By Sam Catanzaro A man died by suicide at Santa Monica Place mall Wednesday....

Santa Monica Partners With Local Elementary Schools to Provide More Outdoor Spaces

September 16, 2020

September 16, 2020

Playground Partnership agreement goes live By Toi Creel The City of Santa Monica and local schools are working together to...

Charges Filed Against Man for Sexually Assaulting Elderly Victims

September 16, 2020

September 16, 2020

Juan Victor Mendoza faces four felony charges Prosecutors have filed charges against a man for sexually assaulting elderly victims at...

COVID-19 Continues to Decrease in County but Air Quality Reducing Testing

September 15, 2020

September 15, 2020

Smoke advisory in effect through Wednesday By Sam Catanzaro While COVID-19 cases continue to decrease in Los Angeles County, health...

Edify TV: Westsiders Working out Amid Poor Air Quality

September 15, 2020

September 15, 2020

With poor air quality due to wildfire smoke, local health officials are urging the public to avoid outdoor activity but...