A general view of the Baker Library/Bloomberg Center on February 17, 2024 at Harvard Business School in Allston, MA.
Erica Denhoff | Icon Sportswire | Icon Sportswire | Getty Images
A Harvard Business School graduate tricked his former colleagues and employees into investing at least $2.9 million in a Ponzi scheme he ran, New York Attorney General Letitia James said Thursday.
James’ office said it secured a court order blocking graduate student Vladimir Artamonov from “harming investors through his fraudulent scheme” that allegedly predicted returns of 500% to 1,000% by claiming to know what investments were being made became Berkshire Hathaway to be planned.
The Manhattan Supreme Court order also prohibits Artamonov from withdrawing and transferring funds from his bank and brokerage accounts.
Artamonov allegedly lured at least 29 investors into the scheme, most of whom he met through his elite college connections, the prosecutor general said.
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James’ office said Artamonov lost millions of dollars of investor money by buying short-term options but did not disclose his losses, instead using the new money invested with him to repay existing investors.
“Artamonov also used his investors’ money to finance illicit personal expenses for vacations, shopping and dining,” the office said.
James’ office said it learned of the fraud after learning of an investor who killed himself after discovering he had lost $100,000 in Artamonov’s alleged scheme.
Even after the man’s suicide, Artamonov continued to solicit new investors and lie to them about the fund’s strategy and performance, a statement from James’ office said.
“Even experienced investors can be deceived by fraudsters, particularly when personal relationships and networks are used to create a false sense of trust,” James said.
“Vladimir Artamonov used his Harvard Business School alumnus status to take advantage of his classmates and others while appearing reputable and reliable. Instead, he cheated people out of their investments, with terrible consequences.”
Artamonov did not immediately respond to requests for comment.
Mark Cautela, communications director at Harvard Business School, told CNBC in an email: “We just found out about this today. We have no further comment.”
Artamonov, who received his master’s degree from business school in 2003, according to James’ office, previously worked in New York as a securities professional.
James’ office said that from September 2021 to date, he raised at least $2.9 million from at least 29 investors for an investment fund called “Project Information Arbitrage” or “Artamonov Fund.”
“Artamonov identified many of his investors through the HBS alumni network,” the AG’s office said. “Many of his investors did not have a close personal relationship with him and only knew him as an acquaintance.”
The office said: “Artamonov lured clients by claiming he could find out what investments Berkshire Hathaway would make ahead of the market by examining public state insurance records.”
“Artamonov bragged to his investors that it was like having ‘a private time machine’ and ‘getting tomorrow’s newspaper today,'” James’ office said, predicting huge investment returns.
But in reality, the office said, Artamonov used investors’ funds to purchase short-term options that expired within days of the purchase, “and appeared to have no connection to Berkshire Hathaway or its investment activities.”
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2024-02-29 22:20:27
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