A former Persian-language financial talk show host, whose assets were frozen after the Securities and Exchange Commission accused him of defrauding investors of $20 million, will get a monthly stipend to cover his living expenses, a judge has ruled.
The SEC accused John Farahi in January of misleading 100 investors by falsely promoting his investment pool as risk-free when he was actually losing millions of dollars in volatile investments. The SEC lawsuit, filed in federal court in Los Angeles, also accused Farahi of using investor money to build a multimillion dollar home in Beverly Hills and funneling his clients’ money to his personal accounts.
This week, U.S. District Judge Dean D. Pregerson ordered a court-appointed receiver to provide Farahi a $3,500 monthly allowance to cover his living expenses. The judge had appointed the receiver to control Farahi’s assets while the court considered the SEC’s accusations.
Farahi, 52, hosted the daily program, “Economy Today,” for about eight years on KIRN-AM (670). The station’s general manager suspended the program after the SEC filed the lawsuit.