Mejdi Mahmoud Abousaoui was sentenced to 25 years in Texas state prison after pleading guilty to running a Ponzi scheme that bilked investors out of more than $4 million.
As part of his sentencing, Abousaoui has paid $210,454.70 in restitution to date, and was ordered to pay an additional $2,803,271.56 in outstanding restitution.
According to a news release from the Texas State Securities Board:
“[Abousaoui] was charged with fraudulently selling securities in a scheme that ran from early 2015 through mid-2018 that involved at least 70 victims and more than $4 million. According to the indictment, Abousaoui misrepresented his use of money tendered by the victims – falsely claiming he would use their money to purchase equities, bonds, mutual funds and other products that would generate a return of 5 percent per month. He also used new investor funds to pay for personal expenses and distributions to prior investors. This type of scheme is often referred to as a Ponzi scheme, where profits are not generated by underlying business activities and instead fraudulently derived from new investors’ funds.”
Fishman Haygood’s Investment Fraud Division has experience bringing claims on behalf of investors who were the victims of Ponzi schemes, including against Allen Stanford.
If you believe you have suffered losses an investment scheme, please contact us to discuss your possible claim.