Monday, 26 January 2015
Last updated 1 hour ago
Jun 30 2008 | 10:14am ET
If New York University thought it had put its involvement with hedge fund fraudster Hakan Yalincak behind it, it was sorely mistaken.
Yalincak, the former NYU undergraduate arrested days before his scheduled graduation from the school in 2005, says NYU administrators reneged on pledges to fix errors that caused him to lose credit for a biology class and an algebra class. He has sued the school in federal court, asking it to raise Fs in those classes to passing grades so that he will have enough credits to graduate with a history degree.
According to Yalincak’s suit, NYU has engaged in a “planned program of harassment and occasionally threats, accompanied by vindictiveness, taunting and derision.” As part of his hedge fund fraud, Yalincak, now 24 and serving out his three-and-a-half year sentence in a North Carolina jail, promised NYU a $21 million donation, getting his family’s name on a prominent lecture hall.
He only made good on $1.25 million of the gift before his arrest. NYU has since removed the Yalincak name from the lecture hall, and returned all but $200,000 of the tainted money.
Yalincak and his mother, Ayferafet, convinced investors to pour millions into the non-existent (and aptly-named) Daedelus Capital Relative Value Fund, with Hakan posing as a wealthy Turkish heir to gain entrée to Greenwich’s monied circles. He faces deportation when he is released in September.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…