Jeffrey S. Kahn, a 55-year-old Republican living in Ridgewood, New Jersey, has been indicted on charges of wire fraud and money laundering related to an elaborate scheme that allegedly defrauded multiple victims seeking funding for their commercial projects.
The indictment comes after Kahn was previously charged with wire fraud in November 2021.
According to U.S. Attorney Philip R. Sellinger, Kahn stands accused of orchestrating a plan from March 2018 through March 2020 to deceive numerous victims into providing millions of dollars under false pretenses.
Victims were allegedly led to believe that their funds would secure financing for their projects through Kahn’s financial advisory firm, Kahn Advisors, LLC.
Documents filed in court reveal that Kahn misrepresented his ability to secure financing, including through an individual and a lender.
Despite warnings indicating the individual might not be legitimate, Kahn continued to assure victims of successful transactions.
Moreover, he allegedly diverted funds sent by victims to other accounts controlled by him without their consent, using portions for personal expenses and to reimburse other victims.
The indictment states that Kahn managed to obtain over $5 million from victims, misappropriating around $800,000 for personal use and redirecting an additional $447,000 to repay other victims, perpetuating the fraudulent scheme.
Wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense. The money laundering charge could result in a maximum sentence of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater.