Earlier this week, Amjed Mahmood pled guilty to bank fraud, mail fraud, and conspiracy to commit wire fraud in connection with a $40 million Ponzi scheme that authorities say defrauded 300 people ("Des Plaines man pleads guilty in $40M Ponzi scheme," Associated Press, March 30, 2011). The scheme primarily targeted Muslim investors living in the Chicago area.According to prosecutors, Mahmood, along with his partners Mohammed Akbar Zahid and Salman Ibrahim, persuaded 300 investors to mortgage their homes and invest their savings in fraudulent real estate deals. They told investors that they would share in the profits of the deals rather than be paid interest on their investments, which is prohibited by Islamic law ("Alleged investment fraud rocks Chicago's Muslim community," InvestmentNews, November 18, 2010). When the scheme collapsed in 2008, many of the investors were left with nothing.Fazal Mahmood, a victim of the scheme, told InvestmentNews: "A lot of people lost their homes, they went through divorces - some lost their kids. All their dreams have shattered....I will never trust anyone with my money again." As reported by the AP, Amjed Mahmood is required (as part of his plea agreement) to cooperate with the prosecution in cases against his two former partners, both of whom remain at large. Mahmood could be sentenced to up to five years in prison for his part in the investment scheme. He also faces a $250,000 fine. His sentencing date has not yet been set.