Current:Home > StocksHarvard Business School grad targeted fellow alumni in Ponzi scheme, New York attorney general says-InfoLens
Harvard Business School grad targeted fellow alumni in Ponzi scheme, New York attorney general says
View Date:2024-12-23 14:48:20
A Harvard Business School graduate is accused of targeting his own, deceiving fellow alumni into investing in a Ponzi scheme.
New York State Attorney General Letitia James, in a court order filed this week, accuses HBS alum, Vladimir Artamonov, of swindling investors out of $3 million. James urged any investors who lost funds to file a complaint.
James' office alleges that Artamonov used his HBS network to court investors in a Ponzi scheme that defrauded at least 29 people, many of whom were connected to HBS, of at least $2.9 million in funds.
A Ponzi scheme is a type of investment fraud involving an organizer who promises risk-free, high returns and pays investors with new backers' funds, not investment profits. These kinds of schemes don't generate returns but depend on a constant stream of new money to survive.
The New York AG has secured a court order that effectively shuts down Artamonov's alleged scheme. Her office said it became aware of the activity after being alerted of the death of an early investor who took his own life after discovering he had lost $100,000 in funds.
"Even after the tragedy, Artamonov continued to solicit new investors and lied to them regarding the fund's strategy and performance," James' office said.
Anyone can be duped
The case highlights that even those with prestigious backgrounds in business or finance can be duped into making unsavory investment decisions, particularly when an opportunity is presented by a trusted contact.
"Even sophisticated investors can be conned by fraudsters, especially when personal relationships and networks are used to build a false sense of trust," Attorney General James said in a statement Thursday. "Vladimir Artamonov used his alumnus status from Harvard Business School to prey on his classmates and others while seeming legitimate and dependable. Instead, he has been scamming people out of their investments, with horrific consequences. Today, we have put a stop to this scheme and encourage anyone who has been defrauded to come forward to my office."
Artamonov graduated from HBS in 2003 with a master's degree in business administration and later moved to New York where he worked as a securities professional. He called his investment fund "Project Information Arbitrage" or the "Artamonov Fund."
In courting potential investors, he claimed to have advance knowledge of Berkshire Hathaway's investment decisions by way of public state insurance filings. He likened his insights to "having a private time machine" or "getting tomorrow's newspaper today," projecting fund returns of 500% to 1,000%, according to the AG.
"In reality, Artamonov used his investors' money to buy short-term options that expired within days of purchase and appeared to have no relation to Berkshire Hathaway or its investment activities," the AG's office said, adding that Artamonov funded a cushy lifestyle for himself using investors' money.
James' court order requires Artamonov to testify and produce books and records to guide an ongoing investigation.
Harvard Business school declined to comment on the matter when reached by CBS MoneyWatch.
Megan CerulloMegan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News Streaming to discuss her reporting.
veryGood! (96)
Related
- FBI raids New York City apartment of Polymarket CEO Shayne Coplan, reports say
- Financial investigators probing suspected contracts descend again on HQ of Paris Olympic organizers
- Greg Norman has 'zero' concerns about future of LIV Golf after PGA Tour-Saudi agreement
- After 189 bodies were found in Colorado funeral home, evidence suggests families received fake ashes
- How Ben Affleck Really Feels About His and Jennifer Lopez’s Movie Gigli Today
- Former nurse sentenced to 30 years for sexually assaulting inmates at women's prison
- Will Smith Calls Relationship With Jada Pinkett Smith a Sloppy Public Experiment in Unconditional Love
- Birds nesting in agricultural lands more vulnerable to extreme heat, study finds
- Cruel Intentions' Brooke Lena Johnson Teases the Biggest Differences Between the Show and the 1999 Film
- Burt Young, Sylvester Stallone's brother-in-law Paulie from 'Rocky' films, dies at 83
Ranking
- NCT DREAM enters the 'DREAMSCAPE': Members on new album, its concept and songwriting
- DHS and FBI warn of heightened potential for violence amid Israel-Hamas conflict
- Minnesota’s budget surplus grows to a projected $2.4 billion, fueling debate over spending
- 'Wake up, you have to see this!': 77-year-old Oregon man wins $1 million Powerball prize
- Bears fire offensive coordinator Shane Waldron amid stretch of 23 drives without a TD
- Travis King, solider who crossed border into North Korea, charged with desertion
- AP PHOTOS: Scenes of violence and despair on the war’s 13th day
- Peru imposes harsh penalties for stealing cellphones, including life in prison
Recommendation
-
Jana Kramer’s Ex Mike Caussin Shares Resentment Over Her Child Support Payments
-
MTV cancels EMAs awards show in Paris, citing Israel-Hamas war
-
2 San Antonio police officers shot and wounded during domestic disturbance call; suspect surrenders
-
Israeli child with autism found dead with her grandmother
-
Auburn surges, while Kansas remains No. 1 in the USA TODAY Sports men's basketball poll
-
Michael Penix headlines the USA TODAY Sports midseason college football All-America team
-
Ryan Reynolds and Blake Lively Have a Simple Favor to Ask Daughter James for Halloween
-
How The Golden Bachelor’s Joan Vassos Feels About “Reliving” Her Sudden Exit