LOS ANGELES (AP) — A former California fund manager has been sentenced to 10 years in prison for defrauding investors out of millions of dollars in an investment scam.
Prosecutors say 56-year-old John Farahi was sentenced Monday in Los Angeles and was ordered to pay more than $24 million in restitution.
Farahi pleaded guilty last June to four counts, including mail and loan fraud.
Authorities say Farahi, who had a regular radio show on KIRN-AM, told investors he would use their money to purchase corporate bonds backed by the Troubled Asset Relief Program, or TARP.
Farahi said in his plea that he acknowledges losses of more than $7 million to the Iranian-Americans he targeted. Prosecutors said the losses were well over $24 million. He used the money to support his family's lavish lifestyle.
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