North Carolina man schemed millions from friends, close contacts then fled to Australia, officials say
By Janice Limon
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CHARLOTTE, North Carolina (WYFF) — A man who fled to Australia when his multimillion-dollar financial scheme in North Carolina collapsed is headed to prison, officials said on Monday.
Gustavo Guzman, 61, previously of Fullerton, California, was sentenced to 70 months in federal prison for orchestrating the investment fraud scheme that defrauded close friends of nearly $2 million, according to U.S. Attorney Dena J. King.
Guzman was extradited from Australia in November 2022 to face charges, officials said.
Court documents reveal that between April 2010 and August 2015, Guzman deceived about 10 investors through entities like G2 Asset Management and East Egg Private Equity.
Guzman falsely promised to invest the funds in options trading.
Instead, he misappropriated the funds for personal expenses, incurred massive trading losses, and made Ponzi-style payments to investors. To conceal his actions, Guzman provided victims with fake financial documents.
When Guzman learned that the government was preparing to charge him, he fled to Australia.
The scheme targeted acquaintances, amplifying the emotional distress and financial hardship experienced by victims.
One victim investor described Guzman as “a trusted family friend,” and another as someone they had known for “over 15 years.”
Special Agent Robert M. DeWitt of the FBI’s Charlotte Division and North Carolina Secretary of State Elaine F. Marshall joined the announcement, underscoring Guzman’s “reprehensible conduct.”
The judgment was delivered by U.S. District Judge Robert J. Conrad Jr.
As part of his sentence, Guzman will also serve two years of supervised release and pay more than $1.9 million in restitution.
Guzman pleaded guilty to securities fraud in July 2023 and currently remains in federal custody awaiting transfer to a designated federal prison.
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