TN insurance agent sentenced to 5 years in prison for wire fraud after MO investigation

TN insurance agent sentenced to 5 years in prison for wire fraud after MO investigation
Mazumder faces five years in prison (Source: Pixabay)

MISSOURI (KFVS) - After an investigation, Manzur Mazumder, a former Bankers Life and Casualty Company (Bankers Life) agent based in Cape Girardeau, was sentenced to five years in prison.

According to Missouri Secretary of State Jay Ashcroft, the U.S. District Court for the Western District of Tennessee sentenced Tennessee resident Mazumder to five years in prison and ordered him to pay $341,960 in restitution for defrauding at least three investors. The investors included one Sikeston, Missouri resident.

Ashcroft said in August 2018, Mazumder was found guilty of two counts of wire fraud. Ashcroft said Mazumder falsely claimed he would start a hedge fund for investors.

The Securities Division’s Enforcement Section opened an investigation in January 2016 on Mazumder.

Ashcroft said this investigation came after receiving information that a 56-year-old Sikeston, Missouri resident had invested of $100,000 with Mazumder to start a hedge fund.

Mazumder told the investor he had a trading strategy that would provide good returns with minimal risks.

Ashcroft said the Missouri investor received $5,000 back after making the investment. The investigation revealed that Mazumder spent a large portion of the investor’s funds on personal expenses and lost additional funds trading in options accounts according to Ashcroft.

On May 3, 2017, Ashcroft said the Missouri Commissioner of Securities issued a Final Order on Mazumder that ordered more than $145,000 in fines, penalties and restitution.

Ashcroft also said Mazumder was served with a Final Order on Aug. 7, 2015, for defrauding a 59-year-old Jackson, Missouri resident. Mazumder told the woman he could make her “rich” by allowing him to make securities trades on her behalf according to Ashcroft. In that case, the commissioner ordered Mazumder to pay $155,000 in restitution.

In 2013 agent Mazumder was accused of fraud in Southern Ill at a fracking meeting. Also in 2013 Mazumder was under investigation after promising someone six figure profits but losing more than $241,000 of that investor’s money.

More than $57,000 was returned to two Missouri seniors in 2015 who had dealings with Mazumder. Later in 2015 more than $83,000 was recovered for two of Mazumder’s victims as well.

Ashcroft urges all investors to know the risks of investing. If you have any questions about an investment opportunity or wish to check the background and registration status of a financial adviser, please call the toll-free investor protection hotline at 800-721-7996, or go online to to file a complaint.

Copyright 2019 KFVS. All rights reserved.