A Los Angeles man was arrested yesterday due to suspicion of his involvement in a multimillion-dollar investment fraud scheme. The scheme reportedly tricked 10,000 victims, resulting in disastrous consequences. The man, Neil Chandran, was arrested and charged with three counts of wire fraud and two counts of engaging in monetary transactions in criminally derived property. Chandran was the owner of several technology companies that advertised high returns. The Department of Justice reports that the companies claimed they were about to be acquired by a consortium of business figures, prompting individuals to invest.
According to the indictment, Chandran forced other individuals to make false and misleading comments to investors in order to benefit financially from their contributions. Some of these falsified claims include that the funds allocated to the companies would allow them to run until they were bought and that a deal was pending. The DoJ alleges that there was no buyer group that was about to purchase the companies, and therefore no actual investment opportunity. The proceeds have been seized by the FBI and US marshals.
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