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US: Investment executives charged with $17 million scam

By  |  April 14, 2016

Fred Elm the founder and manager of Elm Tree Investment Advisors LLC, and Ahmad Naqvi, the firm’s chief operating officer, were charged in a $17 million fraud scheme, Manhattan US Attorney Preet Bharara said.

The two are accused of fraudulently inducing more than 50 investors to put in more than $17 million based on false representations that the funds would be put into privately held companies like Twitter Inc., Alibaba Group Holding and Uber Technologies Inc., according to the US.

Investors’ money was commingled in a single account and only about $7.1 million was actually invested, said Manhattan US Attorney Preet Bharara. What the two didn’t lose in securities trading, Elm allegedly spent for personal expenses, including the purchase of a $1.75 million home, high-end furnishings, daily living expenses, jewelry and luxury cars including a Bentley, a Maserati and a Range Rover.

Full Content: United States Departament of Justice

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