U.S. Attorney Dena J. King | U.S. Department of Justice
Gustavo Guzman, a 61-year-old former resident of Fullerton, California, has been sentenced to 70 months in prison for his role in an investment fraud scheme that defrauded victims of nearly $2 million. The announcement was made by Dena J. King, U.S. Attorney for the Western District of North Carolina. Following his prison term, Guzman will serve two years of supervised release and must pay over $1.9 million in restitution.
In November 2022, Guzman was extradited from Australia to face federal charges related to the scheme conducted between April 2010 and August 2015. He operated through entities such as G2 Asset Management and East Egg Private Equity to mislead investors into believing their funds would be used for trading options and similar investments. Instead, Guzman diverted substantial amounts for personal use.
Court documents reveal that Guzman's activities resulted in significant trading losses and involved Ponzi-style payments to maintain the illusion of legitimate operations. To cover up these losses and prevent investor complaints, he fabricated documents including false IRS forms and account statements.
The fraudulent scheme primarily targeted individuals known to Guzman personally, with victims describing him as a "trusted family friend" or someone they had known for many years. The deception caused considerable financial hardship and emotional distress among those affected.
In July 2023, Guzman pleaded guilty to securities fraud. U.S. District Judge Robert J. Conrad Jr., who imposed the sentence, condemned the long-term nature of Guzman's actions as "reprehensible conduct."
Guzman is currently held in federal custody awaiting transfer to a designated federal facility under the Federal Bureau of Prisons' jurisdiction.
The FBI's Charlotte Division and North Carolina's Department of Secretary of State Securities Division led the investigation with support from international partners including Australian authorities who assisted in securing evidence and extradition.
Assistant U.S. Attorney Daniel Ryan prosecuted the case while a parallel investigation by the U.S. Securities and Exchange Commission resulted in a default judgment against Guzman.
