THE LATEST NOW: Ex-UGA student pleads guilty to running Ponzi scheme from frat house

From May 2018 to May of this year, Arbab sought investors for Artis Proficio Capital Management and Artis Proficio Capital Investments. Prosecutors said Arbab issued false account statements and misrepresented the size of the funds and returns.

Among his false claims, prosecutors said, Arbab said a former UGA athlete and NFL star was among his investors.

Arbab pleaded to a single count of securities fraud. He is scheduled for sentencing in January.

In late May, the Securities and Exchange Commission initiated a civil complaint against Arbab, which is pending. In June, a federal judge froze Arbab's assets and those of his investment funds. At the time, the SEC alleged Arbab defrauded at least eight investors of $269,000, but warned that the size of the scheme could be larger.

In text messages, Arbab allegedly told investors his firm was “different because we target young investors/college kids,” and he charged lower commissions, the SEC complaint said. Arbab allegedly told investors he guaranteed investments of up to $15,000.

The SEC said Arbab also sold “bond agreements,” which were like loans. Instead, Arbab allegedly deposited funds in his bank account and used new proceeds to pay off previous investors who sought money.

A bio on the website for Artis Proficio stated that Arbab graduated cum laude from UGA with a degree in cellular biology, and that at the time he working on a masters of business administration at UGA’s business school.

Prosecutors said Arbab had in fact been rejected from the MBA program at UGA’s Terry College of Business.