Man jailed for investment fraud and theft of $50 million.

A 59-year-old California man, Allen Giltman, was sentenced to seven years in prison for his participation in an investment fraud schemethat led to the theft of $50 million between 2012 and 2020.

Allen Giltman, along with other scammers, used over 150 fake websites that posed as legitimate financial institutions and advertised various investment opportunities. Users who fell into the trap were invited to invest some money, with the intention of earning much more, but ultimately lost their initial capital.

The fake investment sites were promoted through Google and Microsoft Bing ads, and appeared with searches such as “best CD rates” or “highest cd rates.”

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Additionally, the California man and the other scammers posed as Financial Industry Regulatory Authority (FINRA) broker-dealers in the investment scams. They claimed to work for financial institutions and scammed users with the fake sites . This tactic allowed them to dupe more than 70 victims who were looking for investment opportunities. The scammers stole approximately $50 million.

“ After discovering one of the fraudulent websites, the victims contacted an individual via phone or email, as the sites claimed. That individual was allegedly Giltman. During his communications with the victims, Giltman impersonated actual FINRA broker-dealers using their names and FINRA CRD numbers ,” court documents state

“Giltman provided the victims with applications and instructions for purchasing a CD. The funds seized from the victims were transferred to various domestic and international bank accounts, including accounts in Russia, the Republic of Georgia, Hong Kong, and Turkey. None of the victims received a CD after the money was invested.“.

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Throughout the investment scams, the California man and his associates used various tactics to hide their true identities: virtual private networks (VPNs), prepaid phones, encrypted apps to communicate with targets, prepaid gift cards to register web domains, and fake invoices to explain the large bank transfers they received from their victims.

Giltman pleaded guilty to his involvement in the investment fraud in January 2022.

In July 2021, the FBI's Criminal Investigation Division and the Securities and Exchange Commission warned investors that scammers were impersonating registered investment professionals.

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Investment protection practices

• Education is the first step to protecting your investments. Understand the different types of investments and the risks they involve. Stay informed about the latest trends and scams in the investment space .

• Choose reputable and licensed financial advisors. Check their credentials and experience, and make sure they are registered with official regulatory bodies.

• Don't put all your money in a single investment or in a single sector. Diversification reduces the risk of loss.

• Beware of investment opportunities that seem too good to be true: they are probably scams. Scammers often promise high returns with little or no risk. Be skeptical and do thorough research before investing.

• Use secure platforms and technologies for your investments. Make sure the online platforms you use have strong security and encryption measures.

• Keep your personal and financial data safe. Do not share sensitive information via email or phone unless you are certain of the recipient's identity.

• accounts and investments your. Monitor movements and returns, and report any suspicious activity immediately.

• Consult legal and financial experts before making important investment decisions. An expert's opinion can protect you from mistakes and fraud.

Source: www.bleepingcomputer.com