Shrewsbury man indicted in $13 mln investment fraud scheme

A former Worcester investment adviser was charged with mail and wire fraud today in a 20-count indictment that accused him of bilking $13 million from 15 investors, including relatives and a prominent Central Massachusetts business leader.

Amit U. Mathur, 35, of 3 Sunflower Circle, Shrewsbury, was charged today in connection with a four-year scheme in which he held himself out as a savvy hedge fund manager who consistently outperformed the major stock market indices, according to an indictment returned in Boston today.

His investment advisory company -- Entrust Capital Management Inc. of Worcester -- was shut down in April 2005 when the Securities and Exchange Commission charged him and a partner with misappropriating $3.6 million in clients' money, spending it on gambling activities, car payments, credit car bills, New England Patriots season tickets, jewelry and clothing.

If convicted, Mathur faces a maximum sentence of 20 years in prison, a fine of $250,000, and restitution to the victims.

The indictment says approximately $13 million in client funds were lost as a result of Mathur's misappropriation of funds and trading losses experienced in a Kimball & Cross brokerage account.

The indictment identifies the clients by their initials and specifies that DM, a Westborough businessman, incurred an $11 million loss because of his involvement with Entrust.

David G. "Duddie'' Massad of Westborough, chairman and majority owner of Commerce Bancshares Corp. of Worcester, has a civil lawsuit pending against Mathur. In that lawsuit, Massad alleges he lost approximately $15 million because of Entrust's wrongful acts.

A spokesperson for the US attorney's office said Mr. Mathur was not arrested and will be summonsed to court for his arraignment at a later date.

Gary C. Crossen, Mr. Mathur's lawyer, said "Mr. Mathur is looking forward to his opportunity to prove that he committed no crime."
(Worcester Telegram & Gazette)