SAN FRANCISCO—Last week, Krittibas Ray
was sentenced to 65 months in prison for running a multi-million-dollar
fraudulent investment scheme, United States Attorney Melinda Haag announced.
Ray admitted to enticing victims to
invest in a promissory note program and in hedge funds he operated by falsely
telling them that by placing funds into banks in India he could guarantee
returns of 7 percent to 8.5 percent and that the various hedge funds he was
operating were profitable. In addition, Ray admitted that he failed to disclose
to investors that he was using their money for personal expenses and to pay
other investors and that the gains he reported to investors were false. Ray
received approximately $3.3 million from investors between February 2008 and
December 2011. He used a substantial portion of those funds to pay back earlier
investors in his fraudulent scheme.
Ray, 46, of Albany, California, was
arrested on December 16, 2011, after he was charged by criminal complaint. On
December 29, 2011, a federal grand jury indicted him on two counts of wire
fraud, in violation of Title 18, United States Code, Section 1343, and one
count of money laundering, in violation of Title 18, United States Code,
Section 1957. On March 30, 2012, Ray pled guilty to both wire fraud counts.
The sentence was handed down by United
States District Court Judge Susan Illston. Judge Illston also sentenced Ray to
a three-year period of supervised release after he is released from custody and
ordered him to pay $2,709,540 in restitution to the victims of his scheme.
Ray has been in custody since his arrest
on December 16, 2011.
Hallie Mitchell is the Assistant U.S.
Attorney who prosecuted the case with the assistance of Elizabeth Garcia. The
prosecution is the result of an eight-month investigation by the Federal Bureau
of Investigation.
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