Sherman Oaks Man Gets More Than 12 Years for Investment Scam

A Sherman Oaks man was sentenced Monday to more than a dozen years behind bars and ordered to pay millions of dollars in restitution for his part in a telemarketing scheme he ran with his son that cheated about 1,000 victims nationwide out of millions of dollars.

Richard Alan Cohen, 63, pleaded guilty in May 2010 to more than two dozen felony counts related to the scheme that utilized a number of sham companies, including one called Euromints, according to U.S. Attorney's Office spokesman Thom Mrozek.

Cohen was sentenced to 153 months in federal prison by U.S. District Judge George H. Wu, Mrozek said. Last week, Wu sentenced the man's son, 36-year-old Daniel Cohen of Calabasas, to 151 months behind bars for his role in the scam. In addition to the prison terms, Wu ordered the Cohens to collectively pay about $39 million in restitution to victims of the fraud.

About 10 years ago, the Cohens formed several companies—including Eurobrand, LLC, doing business as Euromints; Samuel & Cohen Media, LLC; Mintech International Inc.; and Rig Leasing Inc.—that they used to solicit money from investors with claims that the businesses were successful and generated large profits, Mrozek said.

Potential investors were solicited in several ways, including by a team of salespeople who worked in a "boiler room'' in Calabasas, according to the U.S. Attorney's Office. In addition to making claims that the businesses were viable and successful, salespeople often told potential investors that the companies were on the verge of "going public'' or were going to be taken over by larger companies, Mrozek said.

Salespeople commonly told potential investors that they could buy company stock from a widowed investor who was willing to sell her investment at a discounted price, according to court papers. In reality, the Cohen companies were not successful, the stock certificates issued by the companies were worthless, and a substantial portion of the money received from investors was skimmed by the Cohens to fund their lavish lifestyles, which included luxury cars and the son's "palatial'' Calabasas home, according to the government.

As part of the scheme, father and son were involved in related fraudulent activity, which included the elder Cohen's efforts to avoid paying restitution to victims who lost money when his commodities investment company, Madison Financial, was shut down by the Commodities Futures Trading Commission, Mrozek said.

A third defendant—Joshua Hoffman, 41, of Malibu—was sentenced in 2010 to more than five years in prison. He pleaded guilty in this case, as well as another fraud case that victimized various companies and organizations that thought they were purchasing advertising in magazines, Mrozek said.

-City News Service