Updated
The Nawabi forex fraud indictment charges Eshaq M. Nawabi with eight counts of wire fraud over an alleged investment scheme involving at least $2.7 million. The FBI is seeking additional potential victims. The charges are allegations, no criminal restitution has been ordered, and the FBI form does not guarantee payment.
Key Facts
- The Justice Department announced the eight-count federal indictment on August 27, 2026.
- Prosecutors allege the scheme obtained at least $2.7 million from forex investors.
- The FBI seeks people connected to Eshaq Nawabi, Hyperion Consulting Inc. or Nawabi Enterprise(s).
- A separate CFTC case imposed $4.5 million in restitution and a $4.5 million civil penalty.
- No new refund fund, payment schedule or public claim deadline has been announced.
What Happened
The U.S. Attorney’s Office for the Eastern District of California announced the indictment on August 27. A federal grand jury charged Nawabi, 27, of Salida, California, with eight counts of wire fraud.
The release does not separately identify when the grand jury returned the indictment. The verified new development is the August 27 announcement and the FBI’s active potential-victim search.
What the Nawabi Forex Fraud Indictment Alleges
According to prosecutors, Nawabi represented himself as a successful foreign-currency trader between October 2019 and February 2022. Investors allegedly gave him thousands of dollars to trade in the forex market.
The indictment alleges that monthly statements showed repeated profits, but the statements were fabricated. Prosecutors say the money was not invested as represented and was used for personal spending and to keep the alleged scheme operating. DOJ cited leases for Lamborghinis, a Ferrari, a McLaren and other vehicles.
Nawabi is presumed innocent unless proven guilty. DOJ says the maximum statutory penalty is 20 years in prison and a $250,000 fine if convicted, although the court would determine any sentence.
Who the FBI Wants to Hear From
The official FBI Nawabi victim-information form is for people who invested through Nawabi, Hyperion Consulting Inc., Nawabi Enterprise(s) or related representatives. The form describes a 2018–2022 outreach period, while DOJ’s criminal announcement describes alleged conduct from October 2019 through February 2022.
The form asks about the amount invested, payment method, fund type, representatives, claims about returns and available records. It lists wires, checks, bitcoin and cash among possible payment methods.
Submitting the form is voluntary. The FBI says responses may help identify a potential victim and may lead to follow-up contact. It does not promise victim status, restitution or recovery.
Why the $2.7M and $4.5M Figures Are Different
The criminal and civil figures should not be added together or treated as a new consumer fund.
The Nawabi forex fraud indictment involves an alleged criminal scheme of at least $2.7 million. Separately, the Commodity Futures Trading Commission resolved a civil case in 2024 involving Nawabi, Nawabi Enterprise and Hyperion Consulting.
The CFTC’s April 2024 consent order required $4.5 million in restitution and a $4.5 million civil monetary penalty. The penalty is not victim compensation. The CFTC warned that restitution may not produce full recovery if sufficient assets are unavailable.
The civil order does not replace the criminal process. Criminal restitution could be considered only after a conviction and generally at sentencing. None has been entered.
What Potential Victims Should Do Now
- Complete the official FBI form. Use the secure .gov page, not an unsolicited link.
- Preserve investment records. Save agreements, statements, promotional materials, messages and representative names.
- Document every transfer. Keep wires, canceled checks, cryptocurrency records, cash receipts and withdrawal requests.
- Calculate loss carefully. Separate money invested, money returned and amounts shown only on statements.
- Reject recovery fees. A demand for taxes, legal charges or cryptocurrency to release restitution may be another fraud.
Follow the FBI form’s document instructions. Do not send passwords, one-time codes, seed phrases or private cryptocurrency keys.
How Restitution Would Work
The Justice Department’s federal restitution guidance explains that a judge may order a convicted offender to reimburse qualifying crime-related losses. Victims may be asked for loss records before sentencing.
An order is not the same as money received. DOJ says full recovery is often unlikely when assets are insufficient, and payments may arrive in small amounts over time.
How to Check a Future Forex Offer
The CFTC advises investors to verify a forex dealer’s registration and disciplinary history before sending money. Its forex customer advisory warns about guaranteed returns, fabricated trading displays, withdrawal delays and demands for additional payments.
Registration can be checked through NFA BASIC. A professional-looking statement, luxury lifestyle or personal referral does not verify that trading occurred.
Bottom Line
The Nawabi forex fraud indictment is a new criminal case tied to allegations of at least $2.7 million in investor losses. The FBI is seeking additional potential victims, but no criminal refund program exists. Affected people should use the official form, preserve original records and keep the earlier CFTC restitution order separate from the pending indictment.
Editorial disclaimer: This article provides general consumer information and is not legal, investment or financial advice. Victim status, restitution and recovery depend on the evidence, court proceedings, available assets and applicable law.
This report provides general news and educational information for a U.S. audience. It is not individualized financial, credit, legal, tax, insurance or investment advice. Verify current procedures through the linked official sources.
