Jonathan Fraiman Sentenced to Six Years’ Imprisonment for Mail Fraud
On April 7th, 2016, the Securities and Exchange Commission (SEC) announced that on April 4, 2016, California resident Jonathan Fraiman was sentenced to six years in prison, three years of supervised release, and ordered to pay restitution of $3,800,466.
On August 7, 2014, Fraiman was criminally indicted by a federal grand jury, and was arrested on August 27, 2014. In December 2015 after an 11-day criminal trial, Fraiman was convicted of mail fraud and conspiracy to commit mail and wire fraud. In imposing sentence, U.S. District Judge F. Dennis Saylor, IV noted the “coldhearted” nature of the crimes of which Fraiman was convicted, particularly given that some of the victims were elderly individuals who had lost retirement savings in the scheme.
The SEC previously charged Fraiman for the same conduct in a civil action. According to the SEC’s complaint, filed in federal district court in Boston on August 10, 2012 against Fraiman, two other individuals, and the Envit entities, from January 2008 through late August 2009, Fraiman participated in a fraudulent “boiler room” operation that raised more than $4 million from approximately 150 investors primarily through the use of false promises and pressurized sales tactics with regard to the sale of securities in a group of related entities, most with the name “Envit,” that were owned and controlled by another defendant, including a non-existent hedge fund.
On October 8, 2013, the court in the SEC’s civil action entered judgment against Fraiman enjoining him from future violations of the antifraud provisions of the federal securities laws. On October 11, 2013, the SECissued an Order barring Fraiman from any future association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, with the right to reapply after ten years. Fraiman consented to both the judgment and the SEC’s Order.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.