- Associated Press - Monday, May 5, 2014

NEWARK, N.J. (AP) - Federal prosecutors say the former president of a central New Jersey investment company has admitted defrauding investors out of more than $250,000.

Shreyans Desai, a 27-year-old Edison resident who served as president of Iselin-based Shreysiddh Capital LLC, pleaded guilty Monday to wire fraud charges. He faces up to 20 years when he’s sentenced Aug. 13.

In return for Desai’s plea, prosecutors will dismiss a securities fraud charge after he’s sentenced.

Prosecutors say Desai misled investors about his licensing status and the registration status of the company so he could use their money and trade securities on their behalf.

Desai sought to retain control of the funds by providing them with an inflated value of their investments. He also inflated the amount of commissions he purportedly earned by trading those funds.