NEWARK, N.J.—A California man has pleaded guilty to running a $50 million fraud scheme using fake websites that advertised high returns on certificates of deposit.
Allen Giltman, 56, pleaded guilty by videoconference to wire fraud conspiracy and securities conspiracy. Giltman is scheduled to be sentenced May 10.
According to the U.S. Attorney’s Office in New Jersey, it handled the prosecution because some of the more than 70 victims are from the state.
Prosecutors said that over the span of eight years Giltman and others used fake websites offering high returns on certificates of deposit to lure investors. Some of the websites were set up to resemble legitimate financial institutions.
Prosecutors said to hide their involvement, the co-conspirators purchased the website domains with prepaid gift cards and used virtual private networks, or VPNs, to disguise their digital footprint. Investigators said they identified at least 150 of the websites and more than 70 victims in New Jersey and elsewhere.
Money wired by victims was routed to accounts in Russia, the Republic of Georgia, Turkey and Hong Kong and were not used to purchase the CDs.
Giltman has been ordered to forfeit about $100,000 as well as a few dozen pieces of jewelry and several luxury watches, according to court documents. The U.S. Securities and Exchange Commission has also filed separate charges.