Indian-origin Investment Advisor Jailed for 18 Months in US

Published: 05th November 2015 10:12 AM  |   Last Updated: 05th November 2015 10:12 AM   |  A+A-


NEW YORK: An Indian-origin investment advisor has been sentenced to 18 months in jail for perpetrating a USD 9 million investment fraud scheme involving Facebook stock.

Gignesh Movalia, 40, of Florida was also ordered by Chief US District Judge Steven Merryday to pay USD 5.39 million in restitution and to three years of supervised release following his prison sentence.

Movalia had pleaded guilty in August to one count of investment advisor fraud. In connection with his guilty plea, Movalia admitted that he founded OM Global Investment Fund in 2009 and subsequently used the fund to defraud investors.

In 2011 and 2012, Movalia raised more than USD 9 million from 130 investors by falsely claiming to have access to pre-initial public offering shares of Facebook. Instead of using this money to buy Facebook shares as promised, Movalia invested the money in other securities and concealed that fact from investors.

By September 2013 when it went into receivership, the OM Global Fund lost approximately USD 9 million, with USD 6 million of those losses as a result of the fraud scheme.

Stay up to date on all the latest World news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp