A 59-year-old man from Irvine, California, has been sentenced to 87 months in prison for his role in an investment fraud ring that stole $50 million from unsuspecting investors between 2012 and October 2020.
Allen Giltman, along with his co-conspirators, operated over 150 fraudulent websites that impersonated financial institutions to promote fake investment opportunities, mainly certificates of deposit (CDs) with unrealistically high returns. These scam sites were advertised on Google and Microsoft Bing, targeting search terms like “best CD rates” and “highest CD rates” to lure victims.
How the Scam Worked
According to court documents, Giltman and his team posed as legitimate brokers registered with the Financial Industry Regulatory Authority (FINRA). They tricked more than 70 victims into wiring funds by pretending to work for the financial institutions spoofed on their scam sites.
Victims who found the fraudulent websites would call or email as instructed, unknowingly contacting Giltman. The U.S. Justice Department revealed:
“During his communications with victims of the fraud scheme, Giltman impersonated real FINRA broker-dealers by using their names and FINRA CRD numbers.”
He then provided fraudulent applications and wire instructions to victims, convincing them to transfer money for CD purchases. However, no CDs were ever issued, and the stolen funds were moved across domestic and international bank accounts, including in Russia, Georgia, Hong Kong, and Turkey.
Tactics Used to Conceal the Fraud
To avoid detection, Giltman and his associates used:
✅ VPNs (Virtual Private Networks) to mask their online presence
✅ Prepaid phones and encrypted messaging apps to communicate
✅ Prepaid gift cards to register fraudulent websites
✅ Fake invoices to justify the massive wire transfers they received
Sentencing and Industry Warnings
Alongside his 87-month prison term, Giltman was sentenced to three years of supervised release and ordered to forfeit assets seized at his arrest in 2020. He pleaded guilty in January 2022.
Authorities have been warning investors about similar scams. In July 2021, the FBI and the Securities and Exchange Commission (SEC) alerted the public about fraudsters impersonating registered brokers and advisors. FINRA had also issued a separate warning about phishing sites impersonating investment professionals.
