NEWARK, N.J. (AP) - A New Jersey man has been sentenced to nearly four years in prison for defrauding investors of over $1.5 million in a Ponzi scheme, and using the money to buy himself luxury items including cars, watches, jewelry and a single vacation to Chicago with a $10,000 price tag.
A federal judge on Thursday also ordered 25-year-old Omar Hafez to pay back the $1.5 million.
Prosecutors say that from July 2014 to December 2015 Hafez created a chain of fraudulent companies then solicited thousands of dollars from investors looking to put money into high-profile initial public offerings. He never invested any of the funds.
As money began to run out, Hafez sent checks to some victims, who attempted to cash the checks only to have them bounce over insufficient funds.
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