Earlier today, Elias Ghanem II, formerly of Las Vegas, Nevada, was sentenced to 84 months in prison for orchestrating a fraudulent investment scheme that resulted in losses of approximately $1.4 million. The sentencing took place in federal court in Central Islip before United States District Judge Gary R. Brown. In addition to the prison term, Ghanem was ordered to pay about $1.4 million in restitution to his victims. He had pleaded guilty to wire fraud earlier this year.
The announcement came from Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge of the FBI’s New York Field Office.
“Today, the defendant received just punishment for defrauding more than a dozen investors, including a retired law enforcement officer whose arm was amputated due to gunshot wounds,” stated United States Attorney Nocella. “Our Office and our law enforcement partners will continue to pursue justice for victims of financial crime who fall prey to individuals like Ghanem who advance their greedy desires at the expense of others.”
“Elias Ghanem shamelessly stole more than one million dollars from investors of his companies to fund personal purchases,” stated FBI Assistant Director in Charge Raia. “Ghanem prioritized selfish greed and preyed on the wallets of his victims. The FBI will never tolerate any individual who utilizes lies and deceit to enrich themselves.”
Court documents show that between September 2018 and October 2019, Ghanem solicited around $1 million from investors for Viva Capital Ventures, LLC (Viva), which he claimed was a cannabis distribution and manufacturing company. One investor—a retired police officer—invested roughly $280,000 he had received after being shot during an armored car robbery that led to an amputation. Although Ghanem told investors their money would be used for business expenses such as applications for cannabis distribution licenses across several states, no such applications were made; instead, nearly $1 million went toward personal expenses including buying a luxury waterfront home in Babylon, New York and making payments related to previous criminal charges.
In another scheme involving Friends and Family Hospitality Group (FFHG), which he presented as a restaurant venture, Ghanem raised about $400,000 from investors but spent approximately half on jewelry and leasing a Florida condominium rather than establishing a restaurant in New York City as promised. When pressed by an FFHG investor for repayment, he issued checks that later bounced due to insufficient funds.
The prosecution was handled by Assistant United States Attorneys Bradley T. King and Andrew Wang from the Criminal Section of the Long Island Division with support from Paralegal Specialist Samantha Schroder and Legal Assistant Danielle Casey.
Ghanem is 38 years old and previously resided in Las Vegas.
