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.