Miami grand jury indicts alleged fraud investor

Sergei Federov
Sergei Federov

Sergei Federov’s financial manager, accused of swindling the former Red Wings hockey player out of $43 million, was indicted by a federal grand jury in Miami this week on charges he portrayed himself as a successful businessman with connections to Saudi oil deals.

Michigan resident Joseph Zada allegedly spent more than $20 million of Federov’s cash on living it up in Miami, including lavish parties, luxury cars and million-dollar properties, according to the indictment.

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“It’s been a trying and difficult ordeal that Joe Zada put him through but right now I’d say he is doing well,” Fedorov lawyer Brendan Frey told the Detroit News. “He is glad to see Joe finally indicted.”

Zada, 55, faces up to 20 years in prison on mail and wire fraud charges and 10 years in prison for money laundering and moving stolen property across state lines. [Detroit News]Emily Schmall