“Exploiting the goodwill engendered by such affinity, defendants scammed millions of dollars from their victims with false promises of risk-free investments and guaranteed returns.”įrom June 2012 until March 2019, the Mizrahi brothers raised more than $7 million from investors, promised them “guaranteed” returns between 2% and 3% per month, promised annual rates of return ranging from 30% to 102%, and assured them that their funds could be withdrawn after an initial holding period on an on-demand basis. “For years…Sassi Mizrahi and his brother, co-defendant Motty Mizrahi… operated a Ponzi scheme that targeted victims they knew had reason to trust them: fellow members of the close-knit, Orthodox Jewish Israeli community of the San Fernando Valley,” prosecutors argued in a sentencing memorandum. Both Mizrahi brothers operated MBIG out of their parents’ home in Encino. Motty Mizrahi falsely portrayed himself as a licensed broker, a certified public accountant, and an experienced trader who employed sophisticated financial option- and insurance-hedging strategies through the brothers’ business, MBIG Company. Motty Mizrahi is scheduled to be sentenced on December 18. His brother, Motty Mizrahi, 51, of Encino, pleaded guilty on January 6 to six counts of wire fraud and one count of aggravated identity theft. Carney, who also ordered him to pay $4,477,720 in restitution.Īt the conclusion of six-day trial, a jury on February 14 found Mizrahi guilty of five counts of wire fraud. Sassi Mizrahi, 58, of Sherman Oaks, was sentenced by United States District Judge Cormac J. SANTA ANA, California – A San Fernando Valley man was sentenced today to 87 months in federal prison for scheming with his brother to fraudulently obtain more than $7 million from at least 40 investors – their fellow members of the Valley’s Orthodox Jewish Israeli community – through an investment company they ran out of their parents’ house.
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