LOS ANGELES (AP) -- Federal prosecutors say a Los Angeles County man has pleaded guilty to two felony charges that he ran a $49 million fraudulent investment scheme.
U.S. attorney spokesman Thom Mrozek says 66-year-old Syed Madad of Diamond Bar entered his plea Monday, telling the court that investors lost more than $31 million when his scheme collapsed in March 2011.
In 2005, Madad began bilking investors with false promises that his day-trading would bring them substantial profits and that their money was safe.
But prosecutors say Madad used investor funds to pay for his family's expenses and gambling, in addition to making bad trades.
Madad faces a maximum of 23 years in prison when he is sentenced June 24.
As part of his plea, Madad forfeited his mansion, his luxury car and jewelry.