Former Malibu Resident Sentenced to More Than 15 Years in Prison
Former Malibu resident, Frank Harold Rosenthal, has been sentenced to more than 15 years in federal prison for defrauding investors by making false claims of discounted Alibaba IPO shares. Rosenthal convinced several individuals to invest over $3 million by falsely claiming he had inside connections at Goldman Sachs. He used a middleman to solicit funds from his victims, and to appear legitimate, he negotiated loan agreements and promissory notes that promised significant returns. Instead of purchasing shares of Alibaba, Rosenthal used the money to support his extravagant lifestyle. The sentencing judge referred to Rosenthal as an “incorrigible, serial liar”.
Curious about your city’s darkest crime stories? Dive in here!
Former Malibu Resident Sentenced to More Than 15 Years in Prison
Introduction
In a landmark case that highlights the consequences of financial fraud, a former resident of Malibu has been sentenced to more than 15 years in prison. The individual in question, Frank Harold Rosenthal, was convicted of conning investors with bogus promises of discounted Alibaba IPO shares. This article will provide background information on the case, details of the crime, length of the prison sentence, restitution order, judge’s statement, wire fraud charges, and the scheme involving Alibaba stock.
Background Information
Frank Harold Rosenthal, a former resident of Malibu, perpetuated a sophisticated fraud scheme that targeted unsuspecting investors. From November 2013 to April 2015, Rosenthal claimed to have insider connections at Goldman Sachs, enabling him to purchase shares of Alibaba at a discount before the company’s initial public offering. Rosenthal used a middleman to carry out the scheme, pressuring him to solicit funds from relatives and acquaintances for this supposedly lucrative investment opportunity.
To give his fraudulent scheme an air of legitimacy, Rosenthal drafted loan agreements and promissory notes promising significant returns to his victims. He falsely assured them that the Alibaba shares, which he claimed to be purchasing on their behalf, were locked up and could not be immediately sold. In reality, Rosenthal redirected the funds for his personal benefit, fueling his extravagant lifestyle, including the monthly rent of a luxurious Malibu home.
Details of the Case
The case against Frank Harold Rosenthal was built on a foundation of meticulous investigation and evidence. The IRS Criminal Investigation unit spearheaded the inquiry into his fraudulent activities. Prosecutors argued that Rosenthal not only devised an intricate plan to steal money but also used clever inducements, making it challenging for victims to uncover the fraud.
Compounding his deceit, Rosenthal went to great lengths to create the illusion of exclusivity and success. He concocted fake emails and fabricated connections with influential individuals to enhance the attractiveness of his scheme. By aligning himself with reputable and trusted friends and relatives of the victims, Rosenthal was able to exploit their goodwill and perpetrate the fraud.
Length of Prison Sentence
Frank Harold Rosenthal’s crimes have had severe consequences. As a result, he has been sentenced to more than 15 years in federal prison. This substantial term reflects the gravity of his actions and serves as a deterrent to others who may be tempted to engage in similar fraudulent activities.
Restitution Order
In addition to the prison sentence handed down by Judge Fernando L. Aenlle-Rocha, Rosenthal has been ordered to pay $1,182,500 in restitution. This restitution is intended to compensate the victims for the financial losses they suffered as a result of Rosenthal’s fraudulent scheme. By holding him accountable for his actions in this manner, the court aims to provide some measure of restitution and closure to those affected.
Judge’s Statement
During the sentencing hearing, Judge Aenlle-Rocha did not hold back in his condemnation of Rosenthal’s conduct. He referred to Rosenthal as an “incorrigible, serial liar,” emphasizing the severity of his fraudulent activities. This scathing statement from the judge underscores the seriousness of the crime and sends a powerful message about the consequences of preying upon innocent individuals.
Wire Fraud Charges
Frank Harold Rosenthal pleaded guilty to two counts of wire fraud, which formed the basis of his criminal charges. Wire fraud involves the use of electronic communications, such as telephone calls or emails, to defraud individuals of money or property. Rosenthal’s manipulation of intermediaries and the use of fake emails to deceive his victims were key elements in the wire fraud charges brought against him.
Eager to uncover your city’s sinister side? Explore the latest crime news here!
Scheme Involving Alibaba Stock
The heart of Rosenthal’s fraudulent scheme revolved around the promise of discounted Alibaba IPO shares. By falsely claiming to have insider connections at Goldman Sachs, he enticed investors with the prospect of securing shares of the Chinese e-commerce giant at a lower price before its initial public offering. This scheme preyed on individuals’ desire for lucrative investment opportunities, exploiting their trust and goodwill for personal gain.
Conclusion
Frank Harold Rosenthal’s conviction and sentencing serve as a stark reminder of the consequences of financial fraud. His sophisticated scheme, targeted at unsuspecting investors, caused significant financial harm to his victims. By perpetrating this fraudulent scheme, Rosenthal abused the trust and goodwill of others for his personal gain, resulting in a prison sentence of more than 15 years and the obligation to pay restitution. This case underscores the importance of due diligence when engaging in investment opportunities and serves as a warning to potential fraudsters that their actions will be met with severe consequences.
Discover the underbelly of crime in your city; click for the raw stories!
I'm Jesse, a retired Infantry Paratrooper and I am the mind behind Grimy Times - your portal to the darkest, grittiest news stories spanning the globe. I bring you the most unearthed stories, guaranteeing authenticity without sugarcoating. From shadowy urban alleys to the most remote corners of our planet, my coverage knows no bounds.