Alan Fabian seemed to have everything. He was an entrepreneur, a political fundraiser, had numerous “successful businesses”—in short, he appeared to have everything.
But it was a fraud. Actually, multiple frauds.
Mr. Fabian may have, at one time, actually been a successful enterepreneur. However, in 2001 he began a Ponzi scheme, defrauding investors in his businesses while paying himself a salary of $800,000 a year. He filed tax returns with fictional deductions. One of his shell companies went into bankruptcy in 2004; this may have led to the government investigation.
In 2007, while Mr. Fabian knew that he was soon to be indicted, he accepted another $500,000 loan (which was supposed to go to a non-profit he started). Instead, some of the proceeds were used on a family vacation to the Middle East…a vacation that began with a private plane trip to Israel.
Earlier this year Mr. Fabian pleaded guilty to two counts (one each of mail and tax fraud) out of the 26 he was charged with. On Friday he was sentenced to nine years at ClubFed. Judge Catherine Blake noted when sentencing Mr. Fabian that he had a, “…consistent, repeated, sophisticated pattern of fraud…[with] at least six [years] of grossly illegal and deceptive conduct….”
He will begin serving his sentence just before the New Year.