February 20, 2025 - 04:09
A former financial analyst who gained prominence on CNBC has admitted to defrauding investors out of $3 million. James Art, hailing from Los Angeles County, entered a guilty plea in a federal court, acknowledging his role in a fraudulent scheme that misled numerous investors.
According to the Department of Justice, Art solicited funds from investors under the pretense of managing their investments in a lucrative venture. However, instead of using the money as promised, he diverted the funds for personal expenses and to pay off earlier investors, a classic Ponzi scheme tactic.
The case highlights the ongoing issue of investment fraud and the vulnerabilities that investors face when entrusting their money to financial professionals. Officials have emphasized the importance of conducting thorough due diligence before investing, especially when approached by individuals with a public profile. Sentencing for Art is expected to take place in the coming months, as authorities continue to address the fallout from this significant financial crime.
