LA County CEO Charged with $49M Day-Trading Investment Scheme
Syed Qaisar Madad, CEO and co-owner of Technology for Telecommunication
and Multimedia Inc. (TTM), has been arrested and charged with defrauding
investors in an alleged $49 million, day-trading investment scheme. Authorities
say the victims lost approximately $32 million in the alleged scheme.
According to the indictment, Madad used false promises to raise $49 million
in a Ponzi scheme that he cloaked as a legitimate day trading program.
Specifically, the indictment claims Madad told investors that investments
made via his day trading method would render consistent, substantial profits,
and that he wouldn’t charge any fees or commissions for managing
He also allegedly promised investors their funds were safe and would be
returned to them upon their request. Despite Madad’s representations,
however, the indictment alleges that he didn’t manage the funds
as promised. Instead, he allegedly withdrew millions of dollars in cash
from the investors’ accounts.
Syed then allegedly used the funds for his personal purposes and to make
Ponzi-style payments to earlier investors. Madad, a Pakistani native and
Canadian citizen, has been charged with 12 counts of wire fraud, one count
of making a false statement to a government agency and three counts of
subscribing to a false tax return. If convicted, he could face up to 260
years in a U.S. prison. For more information about the
Technology for Telecommunication and Syed Quaisar Madad case, click here.
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learn more about the signs of Ponzi schemes.