NEW YORK:
A US court has asked federal regulators to freeze the assets of an Indian-origin IIT and Harvard alumnus who has been charged with a fraud scheme in which the investment professional allegedly obtained about $65 million in ill-gotten gains.
Iftikar Ahmed, 43, of Connecticut was an investment professional at a venture capital. The IIT Delhi and Harvard Business School graduate, already facing insider trading charges, was charged in May by federal regulator Securities and Exchange Commission (SEC) with fraud.
SEC said yesterday it has obtained from a court a preliminary injunction freezing Ahmed's assets.
The Commission also obtained an asset freeze against all relief defendants, including Ahmed's wife.
The SEC has alleged that Ahmed obtained approximately $65 million in ill-gotten gains through the 10-year running fraud at the Connecticut-based venture capital firm where he was previously employed.
The federal regulator alleges that Ahmed used a variety of fraudulent devices to perpetrate his scheme and generate illicit profits in connection with numerous securities transactions on which he offered advise.
Ahmed overstated the prices of investments in companies that he presented to his firm, including by altering deal documents, and pocketed the difference for himself.
Ahmed also used fictitious invoices for purported expenses and pocketed the profits.
After directing his ill-gotten profits into bank accounts, Ahmed subsequently transferred those funds into accounts held in his name and the names of family members and other related entities.
The SEC alleges that Ahmed violated the federal antifraud laws and related SEC antifraud rules and seeks a final judgment ordering Ahmed to pay penalties, return allegedly ill-gotten gains with prejudgment interest, and be subject to permanent injunctions from future violations of the antifraud laws.