Anilesh Ahuja, a/k/a “Neil,” the founder, chief executive officer, and chief investment officer of a New York-based investment firm that managed hedge funds focused on structured credit products, was arrested May 9, along with Amin Majidi, a former partner and portfolio manager, and Jeremy Shor, a former trader, at the firm.
The arrests were announced by U.S. Attorney Audrey Strauss, and William F. Sweeney Jr., the assistant director-in-charge of the New York Field Office of the Federal Bureau of Investigation. Ahuja was arrested in New York City, Majidi was arrested at his home in Armonk, New York, and Shor self-surrendered to the authorities, a press release from the U.S. Attorney for the Southern District of New York, said.
Ahuja, Majidi, and Shor are charged with participating in a scheme, from in or about 2014 through in or about 2016, to commit securities fraud and wire fraud relating to the mismarking of certain securities held in hedge funds that their firm managed, thus allegedly inflating the net asset value (“NAV”) of those funds as reported to investors and potential investors. At its peak, the mismarking across all funds managed by their firm exceeded $200 million, authorities say.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
In addition, Strauss announced the unsealing of charges against another Indian-American, Ashish Dole, a former chief risk officer and trader at the same firm, and Frank Dinucci, Jr., a former salesman at a broker-dealer. Both Dole and Dinucci have pled guilty and are cooperating with the Government.
In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against Ahuja, Majidi, and Shor.