Jebara Igbara, the founder of Halal Capital LLC, has been charged by the Securities and Exchange Commission (SEC) in connection with a $8m fraudulent scheme that targeted investors from the Muslim community in the New York metropolitan area.
According to the order, Igbara (aka the Instagram personality Jay Mazini) started Halal Capital in October 2019 with the goal of sharing his purported investment expertise with members of the Muslim community. A part of his alleged scheme was to offer investors promissory notes that claimed to offer significant returns on investments in Halal Capital.
Igbara obtained over $8m from investors, for which he promised to invest in Quran-compliant investments, such as assets being pooled for the purchase of wholesale goods for resale, including electronics and personal protective equipment (PPE).
Luxury vehicles and jewelry
However, the SEC’s complaint states that Igbara embezzled all of the investor’s funds to make Ponzi-like payments to Halal Capital investors or for personal use, including purchasing luxury vehicles and expensive jewelry, or paying off gambling debts.
“As alleged in the complaint, more than a dozen investors in the Muslim community were targeted in this Ponzi-like scheme whose purpose was to enrich the defendant,” said Sheldon Pollock, Associate Director of the SEC’s New York Regional Office. “The Division of Enforcement remains steadfast in pursuing fraud where individuals seek to exploit the trust from fellow members in a community.”
The SEC’s complaint, which was filed in federal court in Brooklyn, charged Igbara with violations of the antifraud provisions of the federal securities laws. Igbara has consented to the entry of a judgment that imposes a permanent injunction and monetary relief is to be determined later. Yet, the settlement is subject to court approval.
Facing 20 years imprisonment
In a parallel action concerning the same conduct, the US Attorney’s Office for the Eastern District of New York has also announced criminal charges against Igbara, for which he pledged guilty to wire fraud, wire fraud conspiracy and money laundering. Besides the first scheme, Igbara also conducted a second fraudulent scheme, where he posted on social media about crypto offerings, and later sent out doctored images of false wire transfer confirmations in return.
“As he admitted today, Igbara deliberately operated multiple scams to cheat a multitude of investors out of their money. The FBI and our law enforcement partners are committed to stopping fraudsters of all types and holding them accountable in the criminal justice system,” said FBI Assistant Director-in-Charge Driscoll.
Igbara faces up to 20 years in prison.
In relation to this fraud scheme, the SEC’s Office of Investor Education and Advocacy reminded investors to thoroughly research future investments opportunities and warned about making investment decisions based solely on shared affinity. IRS-CI Special Agent-in-Charge Thomas Fattorusso said: “This multi-million-dollar case is a reminder for anyone thinking of investing: Be skeptical of any investments with larger-than-life promises, because if it sounds too good to be true, it probably is.”
