Syed Qaisar Madad, 66, of Diamond Bar, duped investors who invested $49 million in his day-training scheme through Technology for Telecommunication and Multimedia, Inc, according to a statement by the office of U.S. Attorney André Birotte Jr.
He faces a maximum sentence of 23 years in federal prison at his June 24 sentencing.
Madad admitted Monday that his investors lost more than $31 million when his plan crumbled in March 2011.
Beginning in 2005 through 2011, Madad received more than $49 million from investors, the statement said.
Investors were led to believe Madad was a successful investor with a good track record who had only lost money in a single day of trading once in 2006.
: For nearly six years, Madad notified victims of sufficient gains in their accounts through monthly account statements.
According to the U.S. Attorney's Office, Madad admitted that the statements were false and he lost more than $15 million in unsuccessful trading.
He also claimed he failed to report the full amount of his income tax for 2009 by $4.9 million.
Madad spent more than $15 million of the investors' money on personal expenses, including real estate, jewelry for his wife and daughters, vehicles and cash disbursements to himself and family members.
He returned about $17.7 million to investors, money from
Madad was sued by one of his investors in 2011.
He was arrested in October 2012 after a warrant was issued and his assets were seized including a Mercedes-Benz C63 and numerous diamond and gemstone jewelry, authorities said.
Madad agreed to pay the IRS about $5 million in unpaid taxes for tax years 2006 through 2010.