Denny Thakorbhai Bhakta, 42, was convicted on 25 counts of securities fraud, bank fraud, and money laundering in connection with a $35 million investment and COVID-relief deception conspracy, the U.S. Attorney’s Office, Southern District of California announced Nov. 1.
According to the department, Bhakta reportedly solicited investments in his companies, Fusion Hotel Management LLC and Fusion Hospitality Corporation, collectively known as “Fusion.”
From 2016 to 2021, Bhakta reportedly misled investors by claiming Fusion regularly purchased discounted hotel room blocks from Hilton and resold them at a higher price to companies such as United Airlines.
The department revealed that Bhakta fabricated bank statements, contracts, and profit and loss reports to support these false claims, showing millions in supposed revenue and profit.
Instead of using investors’ funds as promised, Bhakta reportedly spent the money on gambling, personal expenses, and Ponzi-style payments to earlier investors.
His purchases included luxury vehicles, such as a Mercedes-Benz S-Class and a Porsche 911 Turbo S, the department states.