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Investor Convicted of Wire Fraud in $21 Million Real Estate Case

Posted on May 29, 2011

A high-profile LA businessman was convicted this week on charges stemming from the alleged theft of $21 million from investment clients.

Iranian-born investor Ezri Namvar, the former owner of the Marriott hotel in downtown Los Angeles and the Cal Neva hotel and casino near Lake Tahoe, was charged with four separate counts of wire fraud.

Namvar's former company, Namco Financial Exchange Corp., supposedly held proceeds from real estate sales until clients needed the money to invest it elsewhere, providing a tax shelter so they did not have to pay capital gains tax on their original return.

However, it seemed that Namvar was using this money as his personal piggy-bank, paying for his brother's wedding and distributing other assets to his family. The company went bankrupt soon after, leading to the criminal charges and conviction.

Namvar is free on bond until his sentencing hearing on August 22 and may still appeal. "He's very disappointed, but he's confident he'll ultimately be vindicated," Namvar's attorney Marc Harris said.

The four counts of wire fraud each carry a possible prison term of 20 years, meaning Namvar could be put behind bars for up to 80 years.

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