Gignesh Movalia pleaded guilty to one count of investment adviser fraud.
TAMPA - An investment adviser admitted to running a $9 million investment fraud scheme involving Facebook stock.
Gignesh Movalia, 40, of Tampa, pleaded guilty in federal court to one count of investment adviser fraud, according to a release. Movalia was the founder and manager of OM Global Investment Fund LLC, an investment fund formed in 2009.
According to admissions made in connection with his guilty plea, starting around 2011, Movalia began to solicit investments for the OM Global Fund touting access to pre-IPO shares of Facebook. By the end of 2012, Movalia had raised more than $9 million reserved for buying Facebook shares, authorities say.
Movalia admitted he used those funds for other investments. He also admitted he lied to investors in order to mislead them about the nature and value of their investments in the fund, the release states. OM Global Fund lost about $9 million before it went into receivership in September 2013.
A sentencing date hasn't been scheduled yet.