Yale grad accused of running hedge fund scheme as a student
The precocious investment adviser also inflated the fund’s assets and kept its actual performance under wraps, according to the complaint. He gave presentations claiming the fund’s assets totaled between $2 million and $5 million, when assets under management were never greater than $1.3 million, according to the complaint.
The scheme was uncovered after a pair of investors — who were considering financing an offshore fund with Zaki — asked to verify the fund’s bank and brokerage account balances directly with the custodians.
Zaki on Monday settled fraud charges with the commission, agreeing to pay a $25,000 civil penalty and to comply with a three-year ban from working as an investment adviser. The complaint notes that he’s unemployed and will allow him to pay the fine in installments of $2,083.33 over a three-year period.