Share this article

print logo

Executive gets 22 years in investor fraud

A former high-tech executive convicted of defrauding investors of at least $30 million was given one of the harshest sentences meted out in a white-collar criminal case Monday.

A federal judge in San Francisco sentenced Samuel "Mouli" Cohen to 22 years in prison. Judge Charles Breyer also set a Thursday hearing to consider fines against Cohen that could total $60 million.

Prosecutors argued for the lengthy prison term, calling Cohen a "congenital liar and serial fraudster."

Cohen was convicted of soliciting investments in his digital jukebox company by lying about its success. Prosecutors say his fraud caused the collapse of the Vanguard Public Foundation, a nonprofit tied to actors Danny Glover and Harry Belafonte.

Cohen's lawyers were planning to appeal his conviction on wire fraud, money laundering and tax evasion charges.

Cohen was convicted of falsely telling investors beginning in 2002 that a company he launched called Ecast that made electronic jukeboxes for bars was about to be acquired by Microsoft Corp.

Prosecutors said Cohen kept the scheme going by soliciting more money from victims with complaints that U.S. and then European regulators were holding up the deal, which required additional investments to pay nonexistent fees and bonds needed to push the deal to approval.

Prosecutors say none of that was true. Instead, they said Cohen used the millions to fund an "absurd lifestyle" that included helping his wife publish a cookbook called "The Kosher Billionaire's Secret Recipe."

There are no comments - be the first to comment