Joseph Zada, the man accused of bilking former Red Wings hockey player Sergei Fedorov of $43 million, was convicted of fifteen counts of mail fraud. Prosecutors say that Zada was involved in a $50 million Ponzi scam that went on for a decade.
Zada’s other victims included an ex-Olympic equestrian champion, a pawnbroker, a jeweler, a veterinarian, several hockey players, and dozens of others. He is accused of telling investors that he was placing their money in oil and currency trading via a secret board based in London. Instead, he spent their money on funding his expensive lifestyle.
Zada pretended to be a rich businessman with oil ventures in Saudi Arabia. He touted quick and substantial profits. When investors asked for their money back he claimed he was waiting for a billion dollar inheritance from Saudi Arabia’s royal family. He faces up to 20 years behind bars for each count of mail fraud.
In early 2014, the Securities and Exchange Commission announced that a district court judge had submitted final judgments permanently enjoining Zada and his Zada Enterprises LLC from future violations of federal securities laws’ securities registration and antifraud provisions. The judge ordered Zada and his firm to pay $121,657,74 in disgorgement, civil penalties, and prejudgment interest.
If you suspect you were the victim of securities fraud, contact our financial fraud lawyers today.
NHL great Sergei Fedorov testifies he lost $40 million to Zada scheme, Palm Beach Post, August 21, 2015
Sergei Fedorov’s ex-manager convicted of fraud, Detroit Free Press, September 3, 2015