Gustavo Guzman faces US court over alleged $3m investment fraud after extradition from Australia

After five years on the run in Australia, Gustavo Guzman has finally faced court accused of stealing millions from investors to fund a lavish lifestyle.

Gustavo Guzman was recently arrested after five years on the run in Australia. Picture: AFP

Exclusive: An alleged American con artist who spent five years on the run in Australia has finally faced court in the United States over what authorities claim was a $3m investment fraud scheme.

Gustavo Guzman, 59, is accused of ripping off 10 investors and spending their money on his own lifestyle including luxury car expenses, shopping at department stores, rent costs and credit card repayments.

He was extradited from Melbourne last week, having been apprehended in Healesville earlier this year by the Australian Federal Police.

Officers had previously appealed for public assistance to find him in Sydney’s northwest, where they suggested he may have been living and working under a different name since fleeing from the US.

On Monday, the California man was brought before a North Carolina federal court over the indictment filed five years ago.

Gustavo Guzman has faced court in the US after being extradited from Melbourne. Picture: AFP

Court documents obtained by News Corp reveal Mr Guzman allegedly “held himself out to be an expert in options trading with decades of experience and a successful track record”.

But between 2010 and 2015, authorities allege he stole “a substantial portion of the investors’ money”, some of whom he met through his role with an investor education company.

Mr Guzman allegedly promised investors returns of up to 12 per cent a year, with their money to be invested in real estate even though he was allegedly keeping it and spending it on himself.

The US Attorney’s Office in the Western District of North Carolina also claimed that of the money Mr Guzman did invest, he “suffered massive trading losses and then lied to investors about the performance of their investments”.

In an effort to cover his tracks, the indictment said Mr Guzman made “false and fraudulent representations, fabricated and falsified documents, concealed material facts, and told deceptive half-truths about the status of his victim’s investments”.

He allegedly did so to “lull his victims from redeeming their investments and complaining to authorities, to provide excuses for failing to give victims their money back, and to induce additional investments from victims”.

These alleged lies prompted some of his investors to send him further payments of as much as $460,000 to invest.

If convicted, Mr Guzman could face a lengthy stint behind bars, with a wire fraud charge carrying a sentence of up to 20 years, a transactional money laundering charge up to 10 years, and 20 years and a fine of $5m on a securities fraud charge.

Originally published as Gustavo Guzman faces US court over alleged $3m investment fraud after extradition from Australia