Bergen Man Charged In Alleged Investment Fraud Scheme

A Bergen County man appeared in federal court Tuesday to face charges that he fraudulently received hundreds of thousands of dollars from investors prior to IPOs and used the money to fund his lavish lifestyle, authorities said.

Omar Hafez, 23, of North Arlington, appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court on a conspiracy to commit wire fraud charge, the United States Attorney Paul J. Fishman announced.

According to the complaint that was unsealed today, Hafer and others solicited funds from investors that they were supposed to purchase shares of various companies stock before the businesses’ IPOs, Fishman said.

Hafer would tell victims that he was the CEO of various business entities and had access pre-IPOs shares, Fishman said, including some from a company that allowed software developers to integrate voice, text, and other communications services into mobile and web applications.

Hafer was allegedly provided $400,000 from just one victim, authorities said. He used the money for personal expenses, including a $87,000 purchase at Prestige Motors, a luxury car dealership, and withdrew $100,000 in cash, authorities said.

Hafer could be sentenced to a maximum of 20 years in prison and a $250,000 fine if he is convicted on the wire fraud charge.