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Press Release

Portland Man Defrauds Investors Out of $6.4 Million

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

PORTLAND, Ore. – Yusaf Jawed, 44, Portland, Oregon, entered a guilty plea in federal court to five counts of mail fraud and 12 counts of wire fraud in connection with an investment fraud scheme he orchestrated in Oregon, Washington, California, and other states. Sentencing has been scheduled for June 21, 2013 at 10:30 a.m.

The 17-count information alleges that from February 2008 through September 2009, Jawed raised approximately $6.4 million from investors in a hedge fund he controlled called the Alpha Qualified Fund. Contrary to representations by Jawed, very little of the money was actually invested and most of the funds were diverted to unrelated purposes such as payment of finders’ fees and commissions, repayment of loans, payment of office expenses, and payment to prior investors.

Each count of mail and wire fraud carries with it a maximum sentence of 20 years, a fine of $250,000 and five years of supervised release. As part of Jawed’s plea agreement, both parties will recommend a period of 78 months in prison. In addition, Jawed agreed to $6.4 million in forfeiture, to the extent assets exist, and to make restitution to investors as ordered by the court.

The case was investigated by the Federal Bureau of Investigation, with the assistance of the Securities and Exchange Commission, which also filed a civil lawsuit against Jawed and others associated with him. The case was prosecuted by Senior Litigation Counsel and Assistant U. S. Attorney Allan M. Garten.

Updated January 29, 2015