A California man has been sentenced to 87 months in prison for his involvement in a $50 million internet-enabled fraud scheme. U.S. District Court Judge Esther Salas delivered the sentence on January 21, 2025, as announced by Acting U.S. Attorney Vikas Khanna.
Allen Giltman, aged 59 and residing in Irvine, California, had previously pleaded guilty to conspiracy charges related to wire fraud and securities fraud in Newark federal court.
Court documents reveal that from 2012 until October 2020, Giltman participated in a financial fraud operation using fraudulent websites to solicit funds from investors. These websites often mimicked those of legitimate financial institutions or appeared as entirely fictitious but credible-seeming entities.
Victims typically found these fraudulent sites through internet searches. The sites promoted investment opportunities like certificates of deposit (CDs) with attractive rates of return to entice potential investors.
To gain trust, the fraudulent websites used various tactics such as displaying real financial institution names and logos, claiming FDIC insurance on deposits, and using actual FINRA broker-dealer identification numbers.
Giltman impersonated real FINRA broker-dealers during communications with victims and provided instructions for purchasing CDs. Funds sent by victims were transferred to bank accounts domestically and internationally across Russia, Georgia, Hong Kong, and Turkey. No victim received a CD after transferring funds.
Authorities have identified at least 150 fraudulent websites involved in the scheme. Over 70 victims nationwide lost approximately $50 million collectively.
In addition to the prison term, Giltman faces three years of supervised release and asset forfeiture following his arrest in 2020. The SEC had previously filed a civil complaint against him based on similar conduct.
Acting U.S. Attorney Khanna acknowledged the efforts of FBI special agents under Acting Special Agent Terence G. Reilly's direction in Newark and thanked the SEC's Enforcement Division for their assistance.
Assistant U.S. Attorney Anthony P. Torntore represents the government as Chief of the Cybercrime Unit in Newark.
Defense counsel includes Nina Marino Esq., and Jennifer Lieser Esq., both from Beverly Hills, California.
