Father Daughter Team Charged with $2.8m Securities Fraud Scheme
July 28, 2009 by John Brown
Filed under Business
A federal grand jury in San Francisco yesterday returned a 12 count indictment against two Bay Area defendants charging securities fraud, false statements to accountants, falsifying books and records, obstruction of justice, and conspiracy relating to a fraudulent investment scheme in which the defendants made profits in excess of $2.8 million, United States Attorney Joseph P. Russoniello announced.
Sholeh A. Hamedani
The indictment unsealed yesterday names Sholeh A. Hamedani, 42, of Danville, Calif., and her father, Nasser V. Hamedani, 71, also of Danville. Sholeh A. Hamedani and Nasser V. Hamedani are alleged to have raised millions of dollars from investors in a start-up company they had founded and operated—The Children’s Internet, Inc.—purportedly to develop and market software to protect children’s access to the Internet.
Contrary to their representations, the defendants diverted approximately $1.2 million of investor funds to pay personal expenses that included gambling, automobiles and home mortgages. The indictment also alleges that the defendants used hidden accounts to trade shares in The Children’s Internet and generate additional profits for themselves of approximately $1.6 million.
The defendants were arrested Monday morning by special agents from the Federal Bureau of Investigation and made their initial appearance in federal court in San Francisco before Magistrate Judge Edward M. Chen. They were each released on a $500,000 bond and ordered to submit to electronic monitoring and home detention pending further proceedings.
The defendants’ next scheduled appearance in district court is at 9:30 a.m. on July 30, before Magistrate Judge Chen, for identification of counsel and review of the terms and conditions of their release.
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