Ken Sarna, Unregistered Securities Sale, California 2023

SACRAMENTO, Calif. — In a move to bring closure to the victims of a devastating investment scam, Ken Sarna, 50, of Vallejo, was sentenced to two years and six months in prison for one count of selling unregistered securities.

The sentencing was handed down by United States District Judge Troy L. Nunley on today. Sarna, who was the Director of Operations for Heaven Investments Holding Corporation (HIHC), a Sacramento company, will serve time for his role in the investment program that solicited millions of dollars from unsuspecting investors.

According to court documents, Sarna and his co-defendants, Akbar Bhamani, Zain Bhamani, and Aly Bhamani, operated the HIHC investment program from February 2007 through August 2008. The program, which included the Tenants in Common (TIC) program, sold fractionalized ownership interests to investors in four properties, including a hotel in Oakland. These fractionalized interests qualified as securities, but were never registered with the SEC.

Investors in HIHC lost between $2.5 million and $7 million. The court previously sentenced Akbar Bhamani, the founder and CEO of HIHC, to eight years in prison after hearing from a number of investors who described the devastating impact of their losses to HIHC. In some cases, investors lost their retirement and life savings.

The court also sentenced co-defendants, Zain Bhamani to two years and nine months in prison and Aly Bhamani to 11 months in prison. Shaun Bhamani was sentenced to four months in prison for his failure to report a mortgage fraud that was related to HIHC’s failed investment programs. Judge Nunley has ordered the defendants to pay restitution, the amount of which will be determined at a later proceeding.

The case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Michele Beckwith prosecuted the case.

The sentencing brings an end to the saga of the Heaven Investments Holding Corporation investment scam. For those who lost money in the scheme, this is a small measure of justice. As for Sarna, he will now have to face the consequences of his actions, and serve time for his role in the scam.

The case is a reminder that investment scams can have devastating consequences for those who fall victim. It is essential to do your research and be cautious when investing in any program.

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