A California resident, Allen Giltman, has been sentenced to 87 months in prison for his involvement in a $50 million fraud scheme. The sentencing was handed down by U.S. District Court Judge Esther Salas on January 21, 2025, following Giltman's guilty plea to charges of conspiracy to commit wire fraud and securities fraud.
The fraudulent activity spanned from 2012 to October 2020 and involved the creation of fake websites that mimicked legitimate financial institutions. These sites were used to solicit investments, primarily through the sale of certificates of deposit (CDs), promising high returns. Victims discovered these websites through internet searches and were led to believe they were investing with reputable entities.
To gain trust, the fraudulent websites displayed logos and names of real financial institutions and falsely claimed affiliations with regulatory bodies like the Federal Deposit Insurance Corporation (FDIC) and the Financial Industry Regulatory Authority (FINRA). Giltman impersonated real FINRA broker-dealers when communicating with victims, providing them with false applications and wiring instructions. The funds collected were then transferred to bank accounts worldwide, including in Russia and Hong Kong.
At least 150 fake websites have been identified as part of this scheme, affecting over 70 victims across the United States who collectively lost around $50 million.
In addition to his prison sentence, Giltman will serve three years of supervised release and has been ordered to forfeit assets seized during his arrest in 2020. A civil complaint had also been filed against him by the U.S. Securities and Exchange Commission (SEC).
Acting U.S. Attorney Vikas Khanna credited FBI special agents for their work under Acting Special Agent in Charge Terence G. Reilly in Newark and acknowledged assistance from the SEC's Enforcement Division. Assistant U.S. Attorney Anthony P. Torntore represented the government.
Defense counsel for Giltman included Nina Marino, Esq., and Jennifer Lieser, Esq., from Beverly Hills, California.