CHARLOTTE, N.C. – Gustavo Guzman, 61, formerly of Fullerton, California, has been sentenced to 70 months in prison and two years of supervised release for orchestrating an investment fraud scheme that defrauded victims of nearly $2 million, federal prosecutors announced. Guzman was also ordered to pay more than $1.9 million in restitution.
U.S. District Judge Robert J. Conrad, Jr., handed down the sentence, describing Guzman’s conduct as “reprehensible” during court proceedings. Guzman, who pleaded guilty to securities fraud in July 2023, was extradited from Australia in November 2022 after fleeing the United States to avoid prosecution.
Court documents and evidence revealed that between April 2010 and August 2015, Guzman operated through entities such as G2 Asset Management and East Egg Private Equity to solicit funds from approximately 10 investors. He promised to use their money to trade in financial markets but instead used significant portions for personal expenses, including credit card payments, cash withdrawals, and other lifestyle purchases. Guzman also suffered major trading losses and used some of the funds to make Ponzi-style payments to investors to maintain the scheme.
To conceal the fraud, Guzman provided victims with falsified documents, including fake IRS forms and fraudulent account statements. Many of Guzman’s victims, including close friends, described him as a trusted confidant before learning of the deception. According to court records, some victims experienced significant financial losses and emotional distress as a result of the scheme.
“This case reflects a calculated betrayal of trust over a prolonged period,” said Dena J. King, U.S. Attorney for the Western District of North Carolina, in a statement announcing the sentence. Officials emphasized that the successful prosecution was aided by the FBI Charlotte Division, the North Carolina Department of the Secretary of State, and international partners including the Australian Federal Police.
Guzman remains in federal custody and will be transferred to a Federal Bureau of Prisons facility at a later date.