Boston, MA... A Shrewsbury investment adviser was convicted of 20 counts of fraud in Federal District Court in Worcester on Friday, May 16, 2008 in connection with a scheme that bilked 15 investors of approximately $13 million.

United States Attorney Michael J. Sullivan; Bruce M. Foucart, Special Agent in Charge, U.S. Immigration and Customs Enforcement; and Kenneth W. Kaiser, Special Agent in Charge, Federal Bureau of Investigation, announced today that AMIT MATHUR, age 38, of 3 Sunflower Circle, Shrewsbury, Massachusetts, was convicted of 18 counts of mail and two counts of wire fraud.

According to the evidence presented at trial, MATHUR held himself out as a fantastically successful investment adviser operating a firm in Worcester known as Entrust Capital Management, Inc. (“Entrust”). During that period, MATHUR received approximately $16 million from investors. According to evidence presented at trial, MATHUR told investors -- in person and in marketing literature -- that Entrust was operating a hedge fund that consistently achieved positive rates of return and did better than the general stock market indices. In this way, MATHUR lulled his investors into a false sense of security to persuade them to invest money and to leave their money with Entrust for the long term. In fact, during its entire existence, according to the evidence introduced at trial, the Entrust fund suffered consistent losses. Moreover, in several instances, MATHUR never even invested the money investors gave him. Instead, he misappropriated more than $5 million of investors' money for his own personal use, including luxury items such as several cars, gambling, New England Patriots football season tickets, jewelry, and clothing.

On each count for which he was convicted, MATHUR faces a maximum sentence of 20 years in prison, a fine of $250,000, and restitution to the victims.

The case was investigated by U.S. Immigration and Customs Enforcement and the Federal Bureau of Investigation. The U.S. Attorney’s Office also wishes to acknowledge the efforts of the Securities and Exchange Commission in Boston in providing cooperation during the investigation of this case. The prosecution was being handled by Assistant U.S. Attorney John A. Capin in Sullivan’s Economic Crimes Unit.

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