A San Diego man, Denny Thakorbhai Bhakta, has been sentenced to more than 19 years in federal prison for securities fraud, bank fraud, and money laundering, linked to a $35 million scheme that defrauded numerous investors, including his elderly uncle, according to the U.S. Attorney’s Office for the Southern District of California.
Bhakta, 42, ran the fraudulent scheme through his companies, Fusion Hotel Management LLC and Fusion Hospitality Corporation. From at least 2016 to 2021, he misled investors by falsely claiming that Fusion had acquired discounted hotel room blocks from Hilton, which were then resold to United Airlines at a significant profit.
To bolster his claims, Bhakta provided fraudulent documents, including bank statements, contracts, and fake profit and loss statements that purported to show millions in revenue. In reality, Bhakta misused the invested funds for gambling, Ponzi-style payments to earlier investors, and personal expenses, including purchasing luxury vehicles.
One of the victims was Bhakta’s own uncle, who lost $4.5 million. His uncle, in a heartbreaking testimony, shared that he “lost everything he had worked for in 57 years in America.”
Other victims included a childhood friend, a former boss and his wife, a family friend who lost $1.6 million, and even an 88-year-old investor who lost $50,000.
“This defendant didn’t just betray investors—he callously swindled his own family and closest friends, leaving his elderly uncle bankrupt,” said Acting U.S. Attorney Andrew Haden. “Instead of safeguarding their hard-earned money, he funneled millions straight to casinos, gambling away their futures along with his own.”
Bhakta’s actions left a trail of financial devastation, demonstrating the severe consequences of financial fraud.
