UGA Grad’s Frat House Ponzi Scheme Leads to Fraud Guilty Plea

A Georgia man pleaded guilty to running a $1 million Ponzi scheme from his fraternity house while a student at the University of Georgia, DOJ said Oct. 11.

Syed Arham Arbab pleaded guilty to securities fraud in the U.S. District Court for the Middle District of Georgia, the Justice Department said. He faces an ongoing Securities and Exchange Commission suit in the same court.

Arbab admitted that he falsely promised investors—including fellow UGA students—returns as high as 56%, DOJ said. He also acknowledged that he claimed a UGA football alum who went on to play in the NFL had ...