A 59-year-old Irvine resident, Allen Giltman, has been sentenced to 87 months in prison for orchestrating a sophisticated investment fraud operation that defrauded victims of $50 million between 2012 and 2020.

The scheme involved over 150 fraudulent websites that mimicked legitimate financial institutions, primarily advertising certificates of deposit (CDs) with unusually high returns. These sites were prominently featured through Google and Microsoft Bing advertisements, targeting search terms related to CD investments.

Giltman and his associates impersonated FINRA broker-dealers, using their credentials to establish credibility with potential investors. The operation successfully deceived more than 70 victims, directing their investments to various international accounts in Russia, Georgia, Hong Kong, and Turkey.

To maintain anonymity, the fraudsters employed sophisticated technical measures including:
– VPN services
– Prepaid phones
– Encrypted communication apps
– Prepaid gift cards for domain registration
– Fabricated invoices to justify large wire transfers

The sentence includes three years of supervised release and asset forfeiture. Giltman pleaded guilty in January 2022. This case prompted the FBI and SEC to issue warnings about similar investment fraud schemes targeting retail investors through broker impersonation and falsified registration documents.