U.S. Attorney Benjamin Wagner had Singh arrested on Thursday for investment fraud. In court documents obtained by Action News an FBI agent describes it as a "Ponzi" scheme.
Singh, who's real name is Janamjot Singh Sodhi is accused of selling phony investments out of his company called Elite Financial.
He gained credibility with some investors by falsely claiming he was the co-owner of a popular North Fresno restaurant.
One investor who lost $100,000 got suspicious and alerted Fresno police in 2009. The FBI got involved last year.
But despite the money, two of his former friends told Action News Singh lived modestly in a gated Clovis neighborhood.
After appearing in Federal court Friday, Singh was released from jail. His attorney Dan Bacon told Action News he expects his client to be indicted by a Federal Grand Jury within two weeks, and says he will plead not guilty to all charges.
Singh was let out of jail without posting bail because he has no criminal background. But he lost his license to sell stock 6 years ago for alleged misappropriation of investors' funds. If convicted he could face 20 years in prison.
