EUGENE, Ore. (AP) — The U.S. attorney’s office says a 48-year-old Eugene, Ore., man has pleaded guilty to three counts of mail fraud and one count of tax fraud in an investment fraud scheme that brought him more than $850,000. According to court papers, Hussein Ali Mehdi on Tuesday admitted submitting fraudulent claims for class action settlements associated with various securities litigation.
Mehdi falsely claimed that he and others held stock in companies subject to the class action settlements. To support those claims, court records show the man created fraudulent brokerage account statements that purported to be from various investment firms, including Charles Schwab, TD Waterhouse and Ameritrade.
Sentencing is set for June 7. The maximum penalty for mail fraud is 20 years and a $250,000 fine.
