He Utilized This to Cover His Exorbitant Monthly Rent of $16,000
The U.S. Department of Justice revealed that a former Malibu resident has confessed in court to defrauding multiple investors out of $3 million, which he utilized to cover his exorbitant monthly rent of $16,000 in Malibu, Patch reported.
Frank Harold Rosenthal, aged 48 and presently residing in New York City, pleaded guilty on Friday to two counts of wire fraud in federal court in Los Angeles, as confirmed by the DOJ. According to prosecutors, Rosenthal acknowledged that he enticed investors by falsely asserting that his connections within Goldman Sachs provided him exclusive access to discounted shares of Alibaba before the renowned Chinese ecommerce company’s initial public offering, Patch reported.
Prosecutors further allege that Rosenthal engaged the services of an intermediary, David Kunkle, through deceptive representations and exerted pressure on Kunkle to procure funds from his own relatives and acquaintances.
Rosenthal could potentially face a maximum sentence of 40 years in federal prison. His sentencing is scheduled for October, when he will return to court.
