International businessman sentenced to prison for 'wine and dine cartel'

A New York-based international businessman once described as one of the “world's most international consultants and speakers” has been sentenced to prison and ordered to repay more than $6 million to victims of a wine and dine fraud scheme he ran.

The Department of Justice (DOJ) announced Monday that Omar Khan, 58, was sentenced to two years in prison for an investment fraud scheme involving rare and expensive wines and for impersonating his lawyer during this scheme.

On March 28, 2024, Khan pleaded guilty to a single count of aggravated identity theft.

“Whether it’s a fraudulent scheme involving trading businesses, cryptocurrencies, or expensive wine, this office’s career prosecutors will bring justice to the perpetrators of these crimes,” said Damian Williams, U.S. Attorney for the Southern District. from New York. “Omar Khan stole millions of dollars from his victims, leaving devastation in the wake of his lies, but he now rightly faces two years in federal prison and has been ordered to pay restitution to his victims.”

Rising Fraud Among People 60 and Older Costs Them Billions, FBI Says

The DOJ said that between 2015 and 2019, Khan orchestrated a global fraud scheme involving soliciting investments for wine tastings and networking events.

READ ON THE FOX BUSINESS APP

Khan was the founder and operator of Firm-1, a management consulting firm in New York, and his site described him as one of the “world's most international consultants and speakers.”

He was also called a “fanatical wine connoisseur” by Forbes magazine in an article profiling Khan published on July 2, 2015, titled “The Elite Supper Club for Business Experts and Wine Fanatics.”

THE MOST COMMON TAX SCAMS AND HOW TO PROTECT YOURSELF

To find investors for projects and events involving rare and vintage wines and expensive dinners, Khan would host networking events for wealthy and successful individuals, the DOJ said.

One such dinner was held on December 13, 2017, titled “An Evening of Daring Duos and Tantalizing Trios.” During the event, Khan had vintage wines served with Nantucket bay scallops, oysters, caviar, risotto cooked in bone marrow broth and other expensive food items.

The DOJ said that, according to charging documents and statements made in court, Khan sold the idea that if guests invested in other expensive dinners, networking events and businesses, they would make a profit on their investment .

RETURNS FRAUD HURTS RETAILERS AND COSTS THE INDUSTRY MORE THAN $100B IN 2023

But he also allegedly lied to potential investors to get them to invest and, with few exceptions, diverted investment money and used those funds for personal expenses.

When he was unable to repay them, Khan made false statements to investors.

In one example, Khan met a retiree from New York, identified as Victim-1, who attended one of the dinners in early 2015. Khan remained in communication with Victim-1 and developed a friendship , until finally Khan solicited the victim to become an investor.

THE RISK OF REAL ESTATE FRAUD IS INCREASING AND VICTIMS ARE SOUNDING THE ALARM

Initially, victim 1 invested small amounts of money, but this gradually progressed to larger amounts. For example, in 2018, Khan convinced Victim-1 to invest around $5 million in a famous French vineyard in Bordeaux, France.

Khan presented the investment as a consulting deal involving a New York club backed by the Vineyard. He then stalled for several months and made excuses as to why the deal didn't go through, the DOJ alleged.

In an email to Victim 1, Khan said the money was “moving,” but the next day he falsely claimed the IRS had placed a lien on his business account for unrelated activities. this one in Dubai.

FORMER FACEBOOK AND NIKE DEI MANAGER SENTENCED TO 5 YEARS IN PRISON FOR FRAUD

In February 2018, Khan told another victim, identified as Victim-2, that his bank had delayed the transfer to the victim due to lack of authorization documents.

The following month, Khan told Victim-2 that his lawyers had sent legal requests to the bank to resolve the issue.

In both emails, Khan claimed to have forwarded emails from his lawyer regarding the bank transfer that had been delayed. He also said in the email that his lawyers had “made a legal request” to the bank to resolve the issue.

The DOJ said the emails that appeared to have been sent by Khan's lawyer were fraudulent, adding that he sent them pretending to be his own lawyer.

More victims began to emerge, and on September 3, 2019, several filed a civil suit against Khan, alleging that he convinced them to invest in dinner and wine businesses based on fraudulent misrepresentations.

After a series of New York Post articles shed light on Khan and the trial, he fled the country to Sri Lanka. He was deported from Sri Lanka in February 2024 and arrested at New York's John F. Kennedy Airport.

“Omar Khan's wine and dine project has not aged well. For four years, Khan exploited the prestigious reputation of the wine industry to embezzle millions of dollars from well-meaning investors using vain promises of future, lavish networking events while offering excuses for the lack of returns,” said FBI Deputy Director James Smith. “He used his public notoriety as a wine lover to lure and convince his victims to finance large sums of money, costing some their entire investments.”

In addition to being sentenced to two years in prison, Khan was sentenced to one year of supervised release and ordered to pay the victims $6,699,582 in restitution.

Original article source: International businessman sentenced to prison for 'wine and dine cartel'