Conspiracy to Commit Wire Fraud, Securities Fraud, Inducing Interstate Travel for the Purposes of Fraud, Wire Fraud
Las Vegas, Nev. - Daniel G. Bogden, United States Attorney for the District of Nevada, announced that today, ANIL KUMAR GUPTA was sentenced before United States District Court Judge Phillip Pro to 30 months in federal prison for his conviction on Conspiracy to Commit Wire Fraud, Securities Fraud, and Inducing Interstate Travel for the Purposes of Fraud, and two counts of Wire Fraud. GUPTA pled guilty to the charges in February. He has been in custody since he was indicted last June. GUPTA, 44, was born in India, but is a Canadian citizen who has resided in Las Vegas, Nevada, since 1991. GUPTA held a real estate license in Las Vegas.
According to court documents, GUPTA was the leader in a conspiracy to sell historical Railroad bonds from long-defunct companies. The bonds these companies issued are worthless as securities, having only a nominal memorabilia value. GUPTA and his co-conspirators falsely represented the bonds as valid financial securities, and used a "pigeon-drop" scam to induce purchasers into believing they would be able to re-sell the bonds at a high profit immediately.
The first Wire Fraud count involved GUPTA trading documents, purporting to be "grant deeds" for land in Tennessee, which he represented as being valid, but knew to be worthless, for valuable art works. GUPTA defrauded a well-known artist in California of approximately 200 paintings.
The second Wire Fraud count involved GUPTA selling a 1985 Rolls-Royce automobile while representing that the title was free of liens, when in fact he knew it to be encumbered.
In addition to the 30 months in prison, GUPTA was ordered to pay $295,000 in restitution to the victims of his offenses. GUPTA will also be placed on supervised release following his release from prison. Special conditions of supervised release include that GUPTA provide probation officers access to his financial records, that he not incur any new lines of credit or credit charges, that he use his true name, and that he be restricted from employment in the real estate business. Since GUPTA is a Canadian citizen, a U.S. Immigration Court may also order him deported from the United States.
The case was investigated by Special Agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Matt Parrella.