Samuel "Mouli" Cohen was recently found guilty in an investment fraud scheme that officials say targeted high-profile investors, such as actor Danny Glover and the Vanguard Public Foundation. Although sentencing has not yet taken place in the case, Cohen could face up to 20 years in federal prison.
According to the allegations, Cohen claimed his company Ecast was going to be acquired by Microsoft in the near future. He allegedly offered investors shares, which he claimed would be exchanged for Microsoft shares after the acquisition. If Cohen's claims were true, investors could have stood to gain shares that were worth up to ten times their initial investment in the deal. Unfortunately, Microsoft actually had no plans to acquire the company.
In order to prolong the investment scam, prosecutors say Cohen instead took in even more cash from investors, claiming that certain fees and bonds were necessary to approve the acquisition. They say he was using investors' money to rent a home in Belvedere, buy expensive cars, go on pricey vacations, and rent jet planes.
Investors put up over $6 million initially and were then taken for an additional $25 million in fees and bonds. His sentencing is scheduled for February, but a defense attorney in the case said Cohen is expected to appeal.
The securities fraud attorneys with Meyer Wilson represent investors who have lost money to investment and securities fraud. If you have been harmed by financial fraud, speak with one of our qualified FINRA attorneys today.