SANTA ANA, Calif. — An Irvine man bilked more than 50 investors out of $26.4 million with phony academic credentials, a fanciful rags-to-riches story and a promise to usher in “the next age of humanity” with cutting-edge nanotechnologies that could cure cancer, detect counterfeiting and provide an antidote to snake venom, according to federal regulators.
Faiz M. Chowdhury, 54, who owns Irvine-based DTI Holdings Inc. and Quantum Age Corp., swindled venture capitalists in the U.S. and Asia by falsely claiming to be a Massachusetts Institute of Technology-trained physicist and intellectual prodigy, states a U.S. Securities Exchange Commission lawsuit filed in federal court.
From May 2018 to December 2022, Chowdhury treated DTI and QAC accounts as his “personal piggy bank,” the SEC said. He allegedly spent investment funds totaling $19.8 million to support an extravagant lifestyle that included international travel, gambling, luxury items for himself and his family, ATM cash withdrawals and wire transfers to various entities he controlled.
Remaining investments totaling $6.6 million funded rent, payroll, equipment, insurance, and other expenses for Chowdhury’s two companies, according to the lawsuit filed in September.
The SEC is seeking permanent injunctions and undisclosed monetary penalties against Chowdhury for violating antifraud provisions of the federal securities law.
In a filing with U.S. District Court earlier this month, Chowdhury’s attorney, Andrew Duffy, disputed the government’s claims. “We deny the allegations made by the SEC and are in the process of defending against those actions,” he said.
Chowdhury, who has dual U.S.-Bangladesh citizenship, said in a phone interview he is “tormented” by the false SEC allegations and blames the misunderstanding on a disgruntled investor with a vendetta.
“There is a lot of wrong information in the complaint that will get disproved very soon in court,” he said. “We are real and are developing products that are going to market. My vision is to create a hunger and pollution-free world. That doesn’t happen overnight.”
Chowdhury said he came to the U.S. in 1997 to attend the University of California, Berkeley, where he received a bachelor’s degree in electrical engineering and computer science. He added that while he doesn’t have a doctorate from MIT he has received a management certification from the prestigious university.
Chowdhury described himself as a visionary in the mold of Martin Luther King Jr., saying he dreams of using technology to provide equality for the Earth’s population by addressing poverty, hunger and pollution.
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