Hedge Fund Manager That Faked Own Death Convicted of Fraud

Dec 4 2015 | 11:57pm ET

Purported New York City hedge fund manager Moazzam “Mark” Malik has been convicted of grand larceny and securities fraud in a bizarre case in which he allegedly faked his own death in an effort to conceal an $850,000 fraud.

Malik was convicted on Friday on all 28 counts he was charged with, including grand larceny and securities fraud, according to a statement from New York Attorney General Eric Schneiderman on Friday.

Malik, originally from Pakistan and a former NYPD traffic agent, waiter and security guard, faces up to 20 years in prison when he is sentenced on December 18 sentencing. The SEC has related civil charges pending against him as well. 

Between 2011 and 2015, Malik raised money by pretending to be a successful hedge fund manager, according to the SEC’s complaint.  The name of the fund itself changed names several times, going from Wall Street Creative Partners to Seven Sages Capital, then American Bridge Investment Group, and finally Wolf Hedge.  Malik also claimed that his fund had held assets of $100 million and that he had years of experience on Wall Street, when in fact his only experience in finance was as trainee in the New Jersey office of a small broker-dealer. 

Moreover, Malik never raised more than $850,000, said Schneiderman, and never had more than $90,000 in his brokerage accounts. In fact, the SEC noted that Wolf Hedge’s bank account held a negative balance as of November 30, 2014.

Instead of investing the capital he raised, Malik used the money for luxury travel, dining, jewelry, continuing education courses at Harvard and even a subscription to a matrimonial matching website, the SEC said.

After investors began to ask for their money back, he kept the ruse going by repeatedly avoiding correspondence with investors and even concocting a fictitious employee named “Courtney” who emailed one investor in September 2013 that there was a delay in processing redemptions because Malik had died of a heart attack.

Malik’s attorney, Richard Verchick, noted that he was not surprised by the verdict, which came after a two-week trial and a day of jury deliberations. Malik plans to appeal following sentencing, Verchick told The Wall Street Journal Friday.

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