SEATTLE, Wash. — Satyen Chatterjee, who formerly taught at the University of Washington business school, has been sentenced to more than three years in prison for fraud, AP has reported.
The Indian American educator pleaded guilty last May to federal charges that he swindled at least five investors out of hundreds of thousands of dollars. Chatterjee ran Strategic Capital Management from 1992 until state regulators ordered him to close down in 2013.
U.S. Attorney Annette Hayes said in a written statement that Chatterjee, a native of India, tricked members of his own Bengali community.
U.S. District Judge Thomas Zilly sentenced him March 23 to 40 months in prison and nearly $550,000 in restitution.
As India-West reported on May 21, Chatterjee admitted to engaging in a scheme to defraud investors between 2007 and 2013. According to records filed in the case, at least five victims were defrauded of more than $600,000.
Chatterjee convinced various investors to make investments with him in what he represented were fixed rate securities.
However, he transferred the funds to his own bank accounts, used the money for his own expenses, or lost it as a day trader in the stock market.
He also solicited and accepted investments in a nutritional supplement company but instead of actually using the money for the company, Chatterjee used the money for his own expenses or to pay off prior investors in the fixed rate securities scheme.
— With AP reports