Boat-Buying Ponzi Schemer Admits Luring Investors
Brian Dowling, 09 April 2021
A self-professed venture capitalist from Boston admitted Thursday to duping investors with promises of easy, no-risk profits as part of a Ponzi-like fraud scheme that prosecutors say netted him a powerboat.
Tanmaya Kabra pled guilty to four counts of wire fraud before U.S. District Judge Denise J. Casper under a deal with prosecutors, who have agreed to recommend a sentence at the low end of the federal guidelines. Judge Casper scheduled Kabra’s sentencing for Aug. 30.
Kabra, who fashioned himself as an angel investor and serial entrepreneur, admitted as part of his plea to fraudulently taking funds from 10 people, who lost $1.5 million in dealings with Kabra and his startup development company, LaunchByte.io, according to a statement by prosecutors.
Through LaunchByte and other entities, Kabra lured investors with a pitch for low- or no-risk returns on their money by investing it in the growth of startups, which would later be sold to generate profits.
