On September 23, 2013, Yusaf Jawed, the former head of Grifphon Asset Management, received a six and a half year prison sentence. The U.S. District Court for the District of Oregon ordered that Jawed serve three years of supervised release after his prison sentence and pay $6.47M to victims of his Ponzi scheme.
In April 2013, Jawed pleaded guilty to five counts of mail fraud and 12 counts of wire fraud in connection with his $34M Ponzi scheme. As reported on this blog, Jawed used phony marketing materials, audit reports, and tax statements promising double or triple digit returns to lure investors into Grifphon hedge funds. Soon after Jawed received investor money, he transferred the money into his personal management accounts and used the money to fund his lavish lifestyle.
Under federal minimum sentencing guidelines, the court could have sentenced Jawed to eight years in prison; however, he received a lighter sentence as a result of his cooperation with the government’s investigation into Grifphon’s affairs.
In a parallel civil proceeding, the SEC issued an order on September 11, 2011 requiring Jawed and Grifphon to pay $33.9M. The SEC also took disciplinary actions against Jawed and associates Robert P. Curtis, Jacques Nichols, Lyman Bruhn and Ben Daniels. Curtis, Nichols and Bruhn aided Jawed in the orchestration of a scheme whereby fraudulent records were created indicating that a series of shell companies had purchased assets in Gifphon hedge funds.
Investors in Grifphon are encouraged to contact Blau & Malmfeldt at 312-443-1600 to discuss recovery options. Blau & Malmfeldt is a law firm based in Chicago that represents investors across the country in securities, commodity futures, partnership, and shareholder rights disputes.