Local Man Busted On Fraud Charges
Written by admin on June 5, 2009
The Securities and Exchange Commission says a San Diego man who raised $70 million from 300 investors was running a scam.
The SEC complaint filed Monday in federal court and announced Thursday accuses MAK 1 Enterprises Group LLC and its 32-year-old chief executive, Mohit A. Khanna, of securities fraud. It says he raised money from investors in California, Texas, New York and elsewhere, promising returns of up to 55 percent.
The SEC says Khanna misspent money to pay for luxury properties and cars and he fabricated account balances.
District Judge Roger Benitez has ordered a freeze on the firm’s assets.
The Commodity Futures Trading Commission filed similar charges in federal court.