05/14/2009

News / Shrewsbury Man Sentenced in $12.5 Million Investment Fraud Scheme

BOSTON, MA—A Shrewsbury investment adviser was sentenced to 10 years in prison following his conviction on 20 counts of fraud in federal District Court in Worcester in connection with a scheme that bilked 15 investors of approximately $12.5 million. He was also ordered to pay restitution to his victims.

Acting United States Attorney Michael K. Loucks, Bruce M. Foucart, Special Agent in Charge, U.S. Immigration and Customs Enforcement - Office of Investigations in Boston and Warren T. Bamford, Special Agent in Charge, Federal Bureau of Investigation - Boston Field Office, announced that AMIT MATHUR, age 38, of Shrewsbury, Massachusetts, was sentenced as the result of his conviction of 18 counts of mail fraud and two counts of wire fraud.

MATHUR held himself out as a fantastically successful investment adviser operating a firm in Worcester known as Entrust Capital Management, Inc. During that period, MATHUR received approximately $16 million from investors. According to evidence presented at trial, MATHUR told investors -- in person and in marketing literature -- that Entrust was operating a hedge fund that consistently achieved positive rates of return and did better than the general stock market indices. In this way, MATHUR lulled his investors into a false sense of security to persuade them to invest money and to leave their money with Entrust for the long term. In fact, during its entire existence, according to the evidence introduced at trial, the Entrust fund suffered consistent losses. Moreover, in several instances, MATHUR never even invested the money investors gave him. Instead, he misappropriated more than $5 million of investors' money for his own personal use, including luxury items such as several cars, gambling, New England Patriots football season tickets, jewelry and clothing.

The case was investigated by U.S. Immigration and Customs Enforcement and the Federal Bureau of Investigation. The U.S. Attorney’s Office also wishes to acknowledge the efforts of the Securities and Exchange Commission in Boston in providing cooperation during the investigation of this case. The prosecution was handled by Assistant U.S. Attorney John A. Capin.

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