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Another Local Ponzi Schemer Headed to Slammer

Mohit A. Khanna was sentenced to 41 months in prison today (Nov. 15) in U.S. district court for running San Diego's favorite road to riches: a Ponzi scheme. Khanna's Mak 1 Enterprises offered monthly returns ranging from 8% to 50%. Repeat: MONTHLY returns of 8% to 50%. In pleading guilty, Khanna admitted that he caused investors to lose more than $15 million. He has been ordered to pay restitution of $15.9 million. Khanna told victims that he was a foreign currency trader (sound familiar?) but used the investor money on a lavish lifestyle (also sound familiar?) that included homes in Rancho Santa Fe (where else?), Rancho Bernardo and Virginia. According to court records, accountant Randolph Hirsch and attorney Gustav Bujkovsky assisted Khanna. Hirsch sent a letter to investors fraudulently saying that Mak 1's bank account balance exceeded $50 million, according to the U.S. attorney's office. Hirsch pleaded guilty and will be sentenced Dec. 6. When the scam was coming apart, Bujkovsky concealed investor funds in his attorney-client trust account so they could not be garnished. Later, he misled the Securities and Exchange Commission by failing to disclose the concealed investor funds. Bujkowsky has pleaded guilty and will be sentenced Dec. 15. The SEC had halted the scam in August of last year.

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Mohit A. Khanna was sentenced to 41 months in prison today (Nov. 15) in U.S. district court for running San Diego's favorite road to riches: a Ponzi scheme. Khanna's Mak 1 Enterprises offered monthly returns ranging from 8% to 50%. Repeat: MONTHLY returns of 8% to 50%. In pleading guilty, Khanna admitted that he caused investors to lose more than $15 million. He has been ordered to pay restitution of $15.9 million. Khanna told victims that he was a foreign currency trader (sound familiar?) but used the investor money on a lavish lifestyle (also sound familiar?) that included homes in Rancho Santa Fe (where else?), Rancho Bernardo and Virginia. According to court records, accountant Randolph Hirsch and attorney Gustav Bujkovsky assisted Khanna. Hirsch sent a letter to investors fraudulently saying that Mak 1's bank account balance exceeded $50 million, according to the U.S. attorney's office. Hirsch pleaded guilty and will be sentenced Dec. 6. When the scam was coming apart, Bujkovsky concealed investor funds in his attorney-client trust account so they could not be garnished. Later, he misled the Securities and Exchange Commission by failing to disclose the concealed investor funds. Bujkowsky has pleaded guilty and will be sentenced Dec. 15. The SEC had halted the scam in August of last year.

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41 months ( with time off?)

not much of a deterrent to those planning on the same crime

Nov. 16, 2010

Good point -- 41 months isn't a sufficient deterrent. He also gets 3 years of supervised release but that isn't a deterrent either. Best, Don Bauder

Nov. 16, 2010

41 months for a $16 million ponzi fraud is a joke.

He will get 15% off of that for good behaviour. No parole in the federal system, you do your full amount of time less 15%.

Nov. 16, 2010

Such lenient sentencing paves the way for future Ponzi schemers. But after all, Ponzi schemes are San Diego's stock in trade.

Nov. 16, 2010
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