The Securities and Exchange Commission (“SEC”) has obtained a temporary restraining order and order freezing the assets of Shervin Neman (“Neman”) and the entities he controls, including Neman Financial L.P. The complaint filed by the SEC in the United States District Court for the Central District of California accuses Neman, of Century City, California, of running a fraudulent Ponzi scheme that targeted members of the Los Angeles Persian-Jewish community.
The SEC alleges that during the past two years, Neman raised more than $7.5 million from at least 11 investors by claiming to be a hedge fund manager. Neman reportedly told investors that his company, Neman Financial L.P., invested in foreclosed residential properties that would be quickly flipped for profit, as well as, in highly anticipated initial public offerings in companies such as Groupon, LinkedIn and Angie’s List.
The Complaint states that investors were promised extraordinary returns but what they actually received was money from subsequent investors in true Ponzi scheme fashion. The SEC claims that 99 percent of investor funds were used to pay existing investors or for Neman’s personal expenses. The SEC alleges that Neman spent nearly $1.6 million of investor funds to finance his extravagant lifestyle including purchases of luxury cars, jewelry and vacations.
Investors nationwide who have been the victims of a Ponzi scheme, may contact the Florida securities arbitration lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to firstname.lastname@example.org.