NewPoint Financial Services, Inc., et al.
On January 8, 2010, the SEC obtained a temporary restraining order and other relief against NewPoint Financial Services, Inc., John Farahi, Gissou Rastegar Farahi and Elaheh Amouei in connection with an alleged affinity fraud that targeted the Los Angeles Iranian-American community. According to the complaint, since at least 2003, NewPoint fraudulently offered and sold more than $20 million worth of unregistered debentures by falsely telling investors that the debentures were low-risk.
The SEC alleged that the defendants also falsely told many investors they were investing in FDIC insured certificates of deposit, government bonds and/or companies backed by funds from the Troubled Asset Relief Program. According to the complaint, in reality, the vast majority of the money raised was actually transferred to accounts controlled by the Farahis and used to, among other things, fund the construction of their personal residence and to engage in risky options futures trading in the stock market.
For more information about the SECís action, you can read Litigation Release No. 21369 (Jan. 11, 2010).
The Court appointed James H. Donell as Receiver over NewPoint Financial Services. For the latest information about the Receivership, you can visit the Receiverís website.