Haider Zafar, who lived until recently in Miami-Dade County in Florida, has been charged by the federal government with five counts of wire fraud related to an investment scheme that brought millions of dollars in from investors and also involved a Miami Heat premium ticket package.
If he is convicted, Zafar faces 20 years maximum in prison on each count of wire fraud.
The indictment reads that Zafar introduced himself to investors as part of a wealthy family from Pakistan that ran a number of hotels, including the Marriott that was bombed a few years ago in Islamabad, as well as several oil and textile companies. He told investors that he lived in a large penthouse in New York, and that he also had several residences around the US including one near the Miami Heat arena in Miami.
In October 2012, Zafar spoke with a sales executive at the Miami Heat and told him he wanted to buy a premium, three season ticket package that was worth over $1 million. He also wanted to buy various other items related to the Heat. He was given the package and was expected to pay for it later.
After that, the indictment states that Zafar got millions of dollars from investors, having told them that he was going to invest the money into various investment opportunities. He never invested the money in anything, and then used the money to pay for his expenses as well as pay for the Miami Heat tickets.
Zafar was living in Miami at the time of the offenses, but he is in Ohio right now awaiting a sentence on other federal fraud charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, led the case, and he commended the excellent efforts of the FBI in this matter. The prosecution is being led by Assistant US Attorney Luis Perez.
About Wire Fraud
Wire fraud is a type of fraud that involves using telecommunications to commit intentional deception for material gain. Wire fraud usually crosses state lines, so it normally is handled by federal prosecutors.
Federal law for wire fraud focus on the sort of fraud that has allegedly been committed and the type of wrong and institution was affected. General wire fraud relates to using TV, radio or wire transmissions in commerce without any sort of aggravating factors. There is another type of wire fraud that involves any sort of disaster. Fraud that is committed during any sort of disaster event can be prosecuted more severely.
Another type of wire fraud focuses on that that affects financial organizations. In this case, if proven, the suspect can be convicted of aggravated fraud.