Harvard Business School grad accused of targeting other alums in Ponzi scheme
By Phil Tenser
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BOSTON (WCVB) — Federal prosecutors accuse a Harvard Business School graduate of targeting other alums in a Ponzi scheme that lasted more than two years.
Vladimir Artamonov, 46, of Maryland, is accused of defrauding investors who participated in an investment opportunity he called “Project Information Arbitrage.” According to the U.S. attorney’s office for the Southern District of New York, Artamonov told investors he would put their money into investments ahead of public announcements of moves by Warren Buffett’s Berkshire Hathaway Inc.
Federal prosecutors said Artamonov raised more than $4 million from investors, but actually used the money for “risky short-term” investments that did not implement the strategy he promised and led to millions of dollars in losses. Other money from investors was used for personal expenses.
Prosecutors said he concealed major losses while continuing to solicit new investments and promised customers that profits were coming.
“When investors eventually demanded the return of their funds, Artamonov repaid old investors with new investors’ funds, or declined to repay investors altogether. Ultimately, Artamonov returned less than $400,000 to investors,” U.S. Attorney Jay Clayton’s office said in a statement.
Artamonov faces one count of securities fraud and one count of investment adviser fraud.
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