A Pakistani-American who became known as the 'Muslim Madoff' received a 151-month prison sentence for orchestrating a Ponzi scheme that counted a number of Pakistani-Americans as victims. Syed Qaisar Madad, 66, received his sentence after pleading guilty earlier this year to wire fraud and tax fraud, and had faced a statutory maximum sentence of up to 23 years in federal prison.
Madad, a Pakistani native, founded Technology for Telecommunication and Multimedia, Inc. ("TTM") in 1993. Beginning in 2005, Madad solicited family and friends, including members of the Pakistani-American community in Diamond Bar, California where Madad was a prominent figure, to invest in TTM with the promise of significant profits through his proficiency as a day-trading investor. Madad touted his day-trading strategy, telling investors they could expect annual profits ranging from 30% - 65%. Investors were assured that Madad sought to avoid risk by both beginning and ending the trading day with 100% cash, and were provided with regular monthly account statements showing consistent trading gains. In total, Madad took in nearly $50 million.
However, Madad's purported investment prowess was nothing more than an elaborate Ponzi scheme in which incoming funds from new investors was used to pay fictitious returns to existing investors. Additionally, Madad stole over $15 million of investor funds to sustain his lavish lifestyle, which included $6 million in personal credit card bills, $1.3 million in improvements to his house, a 5.25-carat diamond ring and a $180,000 sapphire and diamond necklace, and a $600,000 down payment on a house for his daughter. Additionally, Madad used investor funds to make more than $1 million in contributions to numerous charities in Pakistan, India, Egypt and the United States. Madad even once hosted a fundraiser at his house that included an appearance by former Pakistan President General Pervez Musharref.
Madad was also ordered to pay restitution to his victims in an amount to be determined at a later date.