In 1992, Browne and her estranged husband were indicted on several charges of investment fraud and grand theft. The Superior Court of Santa Clara County, California, found that Browne and her husband sold securities in a gold-mining venture under false pretences. In at least one instance, they told a couple their US $20,000 investment was to be used for immediate operating costs. Instead, the money was transferred to an account for their Nirvana Foundation for Psychic Research.
Browne's ex-husband has been quoted as saying that Sylvia was unaware of the investment fraud and should not be held accountable for his actions.
Sylvia has attempted to explain her inability to foresee her own conviction by claiming that her psychic abilities do not work on herself and calling her critics 'ignorant'.