The head of a Sacramento real estate investment firm has been sentenced to eight years in prison for selling unregistered securities that federal authorities say resulted in millions of dollars in losses for a number of investors.
Akbar Bhamani, 61, of Carmichael was sentenced Thursday by U.S. District Judge Troy L. Nunley for two counts of selling unregistered securities. He was sentenced to 49 months on one count and 48 months on the second count, to be served consecutively, according to a U.S. Attorney’s Office news release. Judge Nunley also ordered Bhamani to pay restitution, the amount of which will be determined at a later proceeding.
According to court documents, Bhamani was the founder and chief executive officer of Heaven Investment Holding Corp., a Sacramento firm that was family owned and operated. From February 2007 to August 2008, Bhamani and his employees solicited investors to participate in its investment programs, including the Tenants in Common, or TIC program. The TIC program was to use investor money to develop four properties, including a hotel in Oakland.
Heaven Investments Holding Corp. sold fractionalized ownership interests to investors in each of the properties. These fractionalized interests qualified as securities, which Bhamani never registered with the federal Securities and Exchange Commission. Authorities said investors lost between $2.5 million and $7 million.
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The remaining defendants have pleaded guilty and await sentencing.
The case resulted from an investigation by the FBI and the Internal Revenue Service – Criminal Investigation.