Canadian Arrested in LA Over Alleged Ponzi Scheme

Canadian Arrested in LA Over Alleged Ponzi Scheme

The FBI has arrested Canadian Khemraj Dave Hardat on wire fraud charges arising from allegations that he duped seven individuals into wiring him over $5 million over a three-year period. According to the complaint, Hardat tricked investors into believing that their money would be used to invest in businesses that he claimed to manage.

Instead, according to the complaint, Hardat used the money in two ways: (i) for his own personal expenses and (ii) partial re-payments to investors to conceal the fact that most of their money was being misappropriated. If the contents of an affidavit filed in support of the complaint are true, Hardat must have been a smooth talker.

The affidavit alleges that Hardat managed to convince various investors (including a finance professional) that:  he held a postdoctoral degree from Yale; he had generated hundreds of millions of dollars in business deals with prominent multinationals (ironically, the luxurious lifestyle that he managed to afford on allegedly misappropriated investor money served to bolster rather than weaken this claim; he had a bank account with nearly $500 million in it; his friends included the CEO of PepsiCo; he was in a business partnership with Shaquille O’Neal;
and Stephen Curry would endorse one of the products produced by his company.

Hardat Used Big Lie to Dupe Investors  

Although stories of ruined lives and defrauded investors can satisfy morbid curiosity, their ultimate value lies in the lesson that the story can teach an insightful investor. If the allegations against Hardat turn out to be true, the lesson here is that the “big lie” propaganda technique still works, and it can be employed effectively in economics as well as politics.

A big lie can work more effectively than a small lie, simply because people have a hard time believing that anyone would have the audacity to commit such violence against the truth (and therefore the grandiose claim in question must be true). Investors beware.

Speak with an Investment Fraud Attorney

Dimond Kaplan & Rothstein, P.A. has vast experience in representing investors who have sustained losses due to the negligence or misconduct of their broker and/or brokerage firm. We will aggressively pursue claims and fight for your rights.

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. represent individual and institutional investors who have lost money as a result of investment fraud or stockbroker misconduct. We’ve recovered more than $100 million in assets lost to investment fraud and stockbroker misconduct.

Contact Dimond Kaplan & Rothstein Today

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. to schedule an appointment for a FREE case evaluation.

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