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Press Release

Boston Man Sentenced for Investment Fraud Scheme

For Immediate Release
U.S. Attorney's Office, District of Massachusetts

BOSTON – The owner of several Boston-based investment companies was sentenced yesterday in federal court in Boston for operating a Ponzi-like fraud scheme.

Tanmaya Kabra, 27, was sentenced by U.S. District Court Judge Denise J. Casper to 21 months in prison and one year of supervised release. Kabra was also ordered to pay restitution of $1,842,106 and a fine of $15,000. On April 8, 2021, Kabra pleaded guilty to four counts of wire fraud.

Kabra conducted business through a company called LLC and several affiliated entities. He held himself out to investors as a successful serial entrepreneur, venture capitalist and angel investor in start-up companies. Offering lucrative and low or no-risk returns on investments, Kabra lured investors with representations that their funds would be used to foster the growth and development of start-up companies, in order to prepare those companies for sale or for other legitimate business opportunities. In reality, Kabra used the money that he received from investors to pay off existing debts to prior investors in his scheme and to fund his lavish personal expenses, including using more than $200,000 of fraudulently obtained funds to purchase a power boat.

Kabra admitted to victimizing more than 20 individuals who suffered more than $1.8 million in losses as a result of the scheme.  

Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The Securities & Exchange Commission provided valuable assistance in the investigation. Assistant U.S. Attorneys Christopher Looney and James D. Herbert of Mendell’s Criminal Division prosecuted the case.

Updated September 16, 2021

Financial Fraud