News

Once a pillar of the local Iranian Jewish community, businessman and philanthropist Ezri Namvar was a trusted friend to whom many in the community loaned money freely and without fear. Namvar’s reputation, which has been tarnished during the last several years, was dealt another blow on May 19, when Namvar, 59, was convicted on four counts of wire fraud in a downtown Los Angeles federal court.

After only three hours of deliberation, the jury found that Namvar had failed to return $21 million entrusted for safekeeping to his company, Namco Financial Exchange Corp. (NFE), and instead invested the money in risky real estate deals. NFE’s controller, Hamid Tabatabai, 62, was also convicted on four counts of fraud for a scheme with Namvar from March 2008 to August 2008 to defraud five of NFE’s clients of 1031 funds. According to the federal tax code, 1031 funds are profits realized from the sale of a business or investment property that are not immediately liable for capital gains taxes when the money is used to purchase a similar replacement property.