April 22, 2025 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Century City man sentenced to federal prison for running Ponzi scheme

Shervin Neman, whose given name is Shervin Davatgarzadeh, was also ordered by U.S. District Judge Otis D. Wright II to pay about $3.7 million in restitution. (Thinkstock)
Shervin Neman, whose given name is Shervin Davatgarzadeh, was also ordered by U.S. District Judge Otis D. Wright II to pay about $3.7 million in restitution. (Thinkstock)

A Century City man was sentenced today to 11 years in federal prison for running a $3 million Ponzi scheme primarily targeting Iranian Jews living in the Southland.

Shervin Neman, whose given name is Shervin Davatgarzadeh, was also ordered by U.S. District Judge Otis D. Wright II to pay about $3.7 million in restitution.

Neman, 33, was convicted last year of two federal counts of wire fraud and one count of mail fraud.

Neman claimed to be a successful investor who made significant profits, but actually ran a Ponzi scheme from 2010 through 2013 by soliciting funds from investors with false claims that their money would be used to purchase foreclosed real estate and stocks, prosecutors said.

Instead of using investor funds to make the promised investments, Neman spent most of his clients’ money on personal expenditures and to repay other victims.

Neman had been scheduled to be sentenced in November, but the hearing was delayed to allow for a mental competency exam to be performed.

The U.S. Securities and Exchange Commission filed a civil complaint against Neman and his company, Century City-based Neman Financial Inc., three years ago in Los Angeles, prompting a federal judge to issue orders prohibiting him from committing securities fraud.

SEC documents show that Neman was operating a multimillion-dollar Ponzi scheme that primarily targeted members of the Persian-Jewish community in the Los Angeles area.

The month after the SEC sued Neman, he solicited $2 million from another victim with false promises that he could obtain pre-IPO shares in Facebook. Neman used the funds obtained from that investor to pay  most of his earlier victims and the law firm representing him in the SEC action,

Neman then had victims who had been “paid back” write emails saying that he did not owe them money and then tried to use those emails as part of his defense in the SEC case, according to prosecutors.

In June 2012, Neman sent the $2 million victim a check for $2,235,800, supposedly his investment into Facebook plus interest, but it bounced.

Related Posts

Pepper Spray and Panic: LA Homeowners Targeted in Nighttime Burglaries

April 22, 2025

April 22, 2025

LAPD Hunts Suspects After One Resident Attacked in Beverly Grove Two separate home invasions late Friday night in Beverly Grove...

“We’re Better Than This”: Tour Business Owner Pleads for Protection After Third Burglary

April 21, 2025

April 21, 2025

Thieves hit Again, Stealing E-Bikes and Leaving a Wake of Damage in South La Cienega The frustrated owner of a...

Lawsuits Allege Insurance Giants Conspired to Undercut California Fire Victims

April 21, 2025

April 21, 2025

Two Lawsuits Accuse Top Carriers of Price-Fixing and Violating Antitrust Laws Attorneys representing homeowners impacted by California’s January wildfires have...

Cali Camp Welcomes Los Angeles Campers

April 21, 2025

April 21, 2025

By Susan Payne Roam streams, meadows and oak trees in the heart of rock-lined Topanga Canyon this summer at Cali...

Culver City Closes Streets for Earth Day to Encourage Green School Commutes

April 21, 2025

April 21, 2025

Pedal, Walk, or Roll: Culver City Schools Go Car-Free for Earth Day Culver City is taking its Earth Day celebration...

Mayor Karen Bass’ Budget Plan Proposes 1,647 Layoffs Amid $300M Liability Surge

April 21, 2025

April 21, 2025

Civilian LAPD Staff, Transportation, and Sanitation Departments Among Hardest Hit Mayor Karen Bass’ proposed city budget for the upcoming fiscal...

Santa Monica PD Makes Arrest in Ocean Front Walk Stabbing; Second Suspect Sought

April 21, 2025

April 21, 2025

Late-Night Stabbing in Santa Monica Prompts Manhunt After a shocking incident of violence in Santa Monica, a man has been...

ALPR Alerts Lead Culver City Police to Two Stolen Vehicles in Two Hours

April 21, 2025

April 21, 2025

Rapid-Response Tech Aids in Back-To-Back Arrests on Sepulveda Culver City police officers recovered two stolen vehicles within a two-hour period...

Registration is Open for Harvard-Westlake Summer Programs

April 21, 2025

April 21, 2025

By Susan Payne Summer programs at Harvard-Westlake are open for registration.  Participants can experience renowned programs in academics, visual arts,...

Los Angeles City Attorney Sues Over Illegal Rentals, Wildfire Price Gouging

April 20, 2025

April 20, 2025

City Attorney Seeks Permanent Ban and Millions in Penalties for Operators City Attorney Hydee Feldstein Soto has filed a civil...

Culver City Moves the Needle on Housing and Growth in Monthly Pipeline Update

April 20, 2025

April 20, 2025

Monthly Development Report Shows Increase in Affordable Housing Culver City officials have released the latest updates to their Residential and...

Multi-Concept Asian Restaurant Coming to Prime Sunset Strip Corner

April 20, 2025

April 20, 2025

Round 1 Delicious Inks Lease for Asian Dining Concept in WeHo West Hollywood will be the location for a high-end...

Hollywood Legend Raquel Welch’s Former Home Changes Hands in Beverly Glen

April 20, 2025

April 20, 2025

The Late Actress’s Longtime Residence Sold for $3.1 Million More than two years after Raquel Welch’s passing, the late actress’s...

Heads-Up, Westside: Downtown Santa Monica Traffic to Increase with Pali High Move

April 20, 2025

April 20, 2025

Santa Monica Braces for School Traffic Surge Following Wildfire Displacement Drivers throughout Westside communities, from Brentwood to Pacific Palisades, should...

Rents Stay Stable, but Economic Shifts Threaten the Balance

April 20, 2025

April 20, 2025

Tariffs and Tight Supply Could End Flat Rent Streak After more than a year of minimal fluctuation, asking rents, or...