News

FBI arrests Blackhawk father and daughter in securities scheme

Charges range from conspiracy to obstruction of justice

Two members of a Danville family are facing several federal charges in connection with a securities fraud that netted nearly $3 million. Nasser Hamedani, 71, and his daughter Sholeh Hamedani, 42, were taken into custody Monday morning at their home in Blackhawk by officers with the Federal Bureau of Investigation.

U.S. Attorney Joseph Russoniello said the pair faces a 12 count grand jury indictment that was made public Monday. According to the indictments, the Hamedanis raised millions of dollars from investors for a start-up company called the Children's Internet Inc. The funds were to be used to develop and market software to protect children while they used the Internet.

Russoniello said instead the pair diverted approximately $1.2 million of those funds for personal expenses, including home mortgages, vehicles and gambling.

The indictment also alleges that they used hidden accounts to trade shares in their company to generate an additional $1.6 million in profits. They have been charged with securities fraud, obstruction of justice, false statements to accountants, falsifying records and conspiracy.

After their arrest Monday, both of the Hamedanis were brought before Federal Magistrate Edward Chen in San Francisco. They were each released on a $500,000 bond, placed on home detention and forced to submit to electronic monitoring. They were to return to court July 30 to appear again before Judge Chen.

Comments

 +   Like this comment
Posted by Janet
a resident of Alamo
on Jul 30, 2009 at 9:18 am

This is why you do not invest thru individuals...unless you are willing to kiss your money good-bye.


Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.

Email:


Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: *

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields

Hayward NAACP officials threaten blog posters
By Tim Hunt | 21 comments | 1,881 views

Not so speedy trial
By Roz Rogoff | 5 comments | 1,303 views

Duck!
By Tom Cushing | 6 comments | 432 views