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Lawyer faces long prison stretch for obstructing SEC probe of suspected Beverly Hills Ponzi scheme

Nov 14 2012 Stuart Gittleman, Compliance Complete

Los Angeles federal judge Philip Gutierrez on Tuesday found a former partner in two prestigious law firms guilty of obstructing a Securities and Exchange Commission investigation into an alleged Ponzi scheme, U.S. Attorney André Birotte Jr. said. The lawyer, David Tamman, faces up to 190 years in federal prison when he is sentenced, which is scheduled for February 11, 2013. "This verdict demonstrates that there are severe consequences when an attorney crosses the line between vigorous representation of a client and obstruction of an SEC investigation," noted Michele Layne, director of the SEC's Los Angeles regional office. Gutierrez convicted Tamman of conspiring to obstruct justice, altering documents, being an accessory after the fact to codefendant John Farahi's mail and securities fraud crimes, and aiding and abetting Farahi's false testimony before the SEC. Farahi headed a Beverly Hills broker-dealer, NewPoint Securities, and its affiliate, NewPoint Financial Services.

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