LOS ANGELES – The host of a radio business program is accused of taking part in a $20-million investment fraud targeting Iranian-Americans in the Los Angeles area.
The federal Securities and Exchange Commission announced Monday that it's sued NewPoint Financial Services Inc., its two co-owners and controller. The SEC got a court order freezing company assets.
NewPoint co-owner John Farahi allegedly marketed the scheme while hosting a daily Persian-language radio business program on station KIRN.
The SEC claims more than 100 people invested but most of the money wound up in executives' accounts. Some allegedly was used to build a mansion and more than $18 million was lost on risky options trading.