Missouri Secretary of State Jay Ashcroft announced that the U.S. District Court for the Western District of Tennessee has sentenced Tennessee resident Manzur Mazumder to five years in prison and ordered him to pay $341,960 in restitution for defrauding at least three investors that included one Sikeston resident
Missouri Secretary of State Jay Ashcroft announced that the U.S. District Court for the Western District of Tennessee has sentenced Tennessee resident Manzur Mazumder to five years in prison and ordered him to pay $341,960 in restitution for defrauding at least three investors that included one Sikeston resident. After a jury trial in August 2018, Mazumder was found guilty of two counts of wire fraud for his activities related to his solicitation of investor funds, purportedly to start a hedge fund.
The Securities Division’s Enforcement Section opened an investigation in January 2016 on Mazumder after receiving information that a 56-year-old Sikeston resident had invested a total of $100,000 with Mazumder purportedly to start a hedge fund. Among other things, Mazumder told the Missouri investor that he possessed a proprietary trading strategy that would provide good returns with minimal risks. The Missouri investor received only $5,000 back after making the investment. The investigation revealed that Mazumder spent a large portion of the Missouri investor’s funds on personal expenses and lost additional funds trading in options accounts.
On May 3, 2017, the Missouri Commissioner of Securities issued a Final Order on Mazumder that ordered more than $145,000 in fines, penalties and restitution.
In a previous case, the commissioner served Mazumder with a Final Order on Aug. 7, 2015, for defrauding a 59-year-old Jackson resident. In that case, Mazumder told the Missouri resident he could make her “rich” by allowing him to make securities trades on her behalf. In that case, the commissioner ordered Mazumder to pay, among other things, $155,000 in restitution.
Ashcroft urges all investors to know the risks of investing. If you have any questions about an investment opportunity or wish to check the background and registration status of a financial adviser, please call the toll-free investor protection hotline at 800-721-7996, or go online to www.missouriprotectsinvestors.com to file a complaint.