Frank Harold Rosenthal, a 48-year-old man from Malibu, was sentenced to 188 months in federal prison after pleading guilty to two counts of wire fraud in June 2023. The United States District Judge Fernando L. Aenlle-Rocha also ordered Rosenthal to pay $1,182,500 in restitution.

False Promises of Alibaba Shares

Apparently, from November 2013 to April 2015, Rosenthal told victims he had inside connections at Goldman Sachs and could get them special access to buy shares of the Chinese e-commerce company Alibaba at a discounted rate before its IPO.

To carry out his scheme, Rosenthal used a middleman, whom he pressured and lied to, to request funds from his relatives and acquaintances to invest in this supposedly profitable opportunity. In addition, Rosenthal negotiated and created loan agreements and promissory notes with the victims that showed the returns on their loans and investments.

Once Rosenthal received the victims' money, he would tell them that the Alibaba shares were locked up and could not be immediately sold. Then, he would use the money to support his extravagant lifestyle, including $16,000 monthly to rent a Malibu home. When the victims threatened Rosenthal with legal action, he used some of the funds he received from earlier victims to pay off the later ones.

How an Experienced Criminal Defense Attorney Can Help

Wire fraud is a federal offense that carries a significant prison sentence if convicted. To prove wire fraud, the prosecution must show that (1) there was a scheme to use false pretenses to defraud victims, (2) the defendant knew about the scheme and willfully participated with the intent to defraud the victims, and (3) the defendant used interstate wire communications (like telephone calls and emails) to further the scheme.

If you or someone you know has been accused of wire fraud, you will have to show that you either did not use false pretenses, didn't know you were defrauding someone, or that you did not willfully participate in the scheme. Having an attorney by your side during these hearings is the best way to ensure you are not subjected to unnecessary punishments.

Attorney Vitaly Sigal of Sigal Law Group can help. Call 818-325-0570 today or schedule a free consultation online.