San Francisco Man And New York Man Charged In Scheme To Defraud Investors

Press Release

Defendants Allegedly Lied About Their Hollywood Connections to Obtain Funds

OAKLAND - A federal grand jury indicted Avi Fogel, now known as Avi King, and Christos Chrestatos each with one count of conspiracy to commit wire fraud and four counts of wire fraud. Fogel was also charged with one count of false writings to a government agency and an additional count of wire fraud.

Fogel, 47, of San Francisco (who was also known as, in addition to Avi King, Aaron Rose, Aaron Rothchild, and Aaron Gilman), self-surrendered on Nov. 7, 2024, and made his initial appearance in federal court in Oakland that same day. Chrestatos, 45, of Long Island, N.Y., also known as Chris Silverman, was arrested today, and made his initial appearance in federal court in the Eastern District of New York.

According to the indictment filed Oct. 3, 2024, and unsealed Nov. 7, 2024, defendants allegedly engaged in an investment fraud scheme wherein they purported to be producers in the entertainment industry with close ties to "A-list" actors, directors, and other celebrities. Fogel allegedly met potential victims in a variety of places, such as dating websites and shared taxi rides. At various times, defendants claimed to be producers at "Universal." The indictment alleges that the men lied to victims about their ability to arrange investment and product integration deals in feature films, documentaries, and television series when they knew they had no actual connection to the productions and no affiliation with Universal.

Defendants allegedly created entities, including Suzy and the Sock Dragon Media Group, LLC, Rhinoheart Films, LLC, and The Book Media Group, LLC, to entice investors to invest in their fraudulent scheme. According to the indictment, Fogel and Chrestatos fraudulently obtained investments from multiple victims totaling approximately $167,100, and used the funds for purposes other than as represented to investors.

Additionally, the indictment alleges that Fogel submitted a fraudulent loan application to the U.S. Small Business Administration through the Economic Injury Disaster Loan Program, ultimately receiving $52,400. Fogel allegedly claimed that his company, Suzy and the Sock Dragon Media Group, LLC, was engaged in "entertainment services," had $125,000 in gross revenues and sold $20,000 in goods, amounts that were derived from the money obtained through defendants' investment fraud scheme.

The announcement was made by United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp.

Both defendants were released on bond. Fogel's next scheduled appearance is on Dec. 9, 2024, for a status hearing before the Honorable Araceli Martínez-Olguín, U.S. District Judge.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, defendants each face a maximum sentence of 20 years of imprisonment, a fine of $250,000, three years of supervised release, and forfeiture for the charges of conspiracy to commit wire fraud and wire fraud in counts one to five. Additionally, if convicted, Fogel faces a maximum sentence of 30 years of imprisonment, a fine of $250,000, three years of supervised release, and forfeiture for the wire fraud charge in count six, and five years of imprisonment, a fine of $250,000, three years of supervised release, and forfeiture for the false writings to a government agency charge in count seven. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorney Benjamin K. Kleinman is prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the FBI.

Avi Fogel Indictment

Updated November 15, 2024