On Wednesday, May 9, 2018, it was announced that Anilesh Ahuja or “Neil” who is the founder, CEO and chief investment officer of a New York-based investment firm that managed hedge funds, Amin Majidi and Jeremy Shor had been arrested. Majidi is a former partner and portfolio manager at the firm. Shor was a former trader at the firm. The defendants are charged with participating in a scheme to commit securities fraud and wire fraud related to the mismarking of certain securities held in hedge funds managed by the firm from roughly 2014 to 2016.
It is alleged that the mismarking across all funds exceeded $200 million at its peak. Also, charges were unsealed against Ashish Dole and Frank Dinucci Jr. Both have pleaded guilty and are currently cooperating with the government. The SEC has also filed civil charges against Ahuja, Majidi and Shor. Further details have been made available here.