Mehmet Fatih Biyikoglu, Wire Fraud, California 2023

LOS ANGELES - Mehmet Fatih Biyikoglu, a.k.a. “John B.,” 53, of Palm Desert, was sentenced to 121 months in federal prison for defrauding elderly victims who thought their money was being invested in a certificate of deposit at a major bank.

Biyikoglu, the co-founder and chief executive officer of Five Star Financial Services of America, solicited more than $4 million from investors, many of whom were elderly, retired or financially unsophisticated. He falsely told investors that their money would be placed in a Chase Bank certificate of deposit (CD), where it would earn 9 to 13 percent interest with little risk to the investors’ principle.

In reality, the Chase Bank CD did not exist and Biyikoglu stole the investors’ money. He used the pilfered funds to finance his own lavish lifestyle, including the purchase of a Rolls Royce and other luxury automobiles. By comparison, Five Star investors lost nearly everything, including one 70-year-old victim who lost nearly all of his $1.6 million investment.

To cover up his scheme, Biyikoglu created fraudulent account statements – which included the Chase Bank logo – to deceive investors into believing their money was held in a segregated account at Chase Bank and was earning interest as promised.

Biyikoglu also removed his location-monitoring ankle bracelet and attempted to flee to Mexico in January 2019, while he was free on bond, but was arrested at the U.S.-Mexico border, carrying $1,300 in cash, 8,700 pesos and a significant amount of luggage.

Two co-conspirators charged in this case have pleaded guilty and are serving prison sentences. Anna Marie Holt, Five Star’s former president and chief operating officer, is serving a three-year federal prison sentence for conspiracy to commit wire fraud and subscribing to a false tax return. Ida Shaghoian, a sales agent with Five Star and Biyikoglu’s ex-wife, is serving a four-year prison sentence for wire fraud and subscribing to a false tax return.

Biyikoglu was sentenced by United States District Judge R. Gary Klausner and ordered to pay $3,561,300 in restitution. The case was investigated by the FBI and IRS Criminal Investigation, with substantial assistance from the California Department of Insurance. This matter was prosecuted by Assistant United States Attorney Scott D. Tenley of the Santa Ana Branch Office.

Source: https://www.justice.gov/usao-cdca/pr/ex-ceo-irvine-financial-services-firm-sentenced-over-10-years-prison-stealing-35