New York, Sep
17 - An Indian
businessman was arrested in the US
today for allegedly defrauding investors of about USD 2.4 million and could
face up to 20 years in prison.
Janamjot Singh Sodhi, 35 of California was arrested on a warrant issued
earlier this week for the investment fraud scheme, US Attorney Benjamin Wagner
said.
According to the complaint, Sodhi owned Elite
Financial Inc and enticed investors into giving him money for investment
opportunities, but used the money instead to pay off previous investors and for
his own personal use.
Since 2005, Sodhi's license to sell
investments had been revoked and in January 2009, California issued a cease and desist order
against him and Elite Financial from selling securities to investors.
It is alleged that Sodhi defrauded investors
of USD 2.4 million.
If convicted, Sodhi faces
a maximum penalty of 20 years in prison and a USD 250,000 fine.
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