SHREWSBURY MAN CHARGED IN $13 MILLION INVESTMENT FRAUD SCHEME

Boston, MA... A Shrewsbury investment adviser was charged with fraud today by a federal Grand Jury in connection with a scheme that bilked 15 investors of approximately $13 million.

United States Attorney Michael J. Sullivan; Bruce M. Foucart, Special Agent in Charge, U.S. Immigration and Customs Enforcement; and Kenneth W. Kaiser, Special Agent in Charge, Federal Bureau of Investigation, announced today that AMIT MATHUR, age 35, of 3 Sunflower Circle, Shrewsbury, Massachusetts, was charged today in a twenty-count Indictment with mail and wire fraud.

The Indictment alleges that from 2001 to 2005, MATHUR held himself out as an investment adviser operating a firm in Worcester known as Entrust Capital Management, Inc. (“Entrust”). During that period, MATHUR allegedly received approximately $16 million from investors. According to the Indictment MATHUR told investors that Entrust was operating a hedge fund that consistently achieved positive rates of return and that the Entrust portfolio was consistently growing in value. It is alleged that MATHUR told investors that Entrust used a software program that enabled it to create a highly profitable hedge fund. MATHUR persuaded people to invest by telling them, personally and through marketing literature, that the Entrust hedge fund consistently outperformed the major stock market indices. In fact, during most of its existence, the fund suffered consistent losses. Throughout this period, the Indictment alleges, MATHUR lulled investors into a false sense of security in numerous ways, including sending investors false statements reporting positive returns on their investments. Moreover, the Indictment alleges that MATHUR diverted for his personal use approximately $3.2 million, which he is alleged to have spent on things such as gambling, cars, New England Patriots football season tickets, jewelry, and clothing.

If convicted, MATHUR faces a maximum sentence of 20 years in prison, a fine of $250,000, and restitution to the victims.

The case was investigated by U.S. Immigration and Customs Enforcement and the Federal Bureau of Investigation. The U.S. Attorney’s Office also wishes to acknowledge the efforts of the Securities and Exchange Commission in Boston in providing cooperation during the investigation of this case. The prosecution is being handled by Assistant U.S. Attorney John A. Capin in Sullivan’s Economic Crimes Unit.

The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Press Contact: Samantha Martin, (617) 748-3139