- A Harvard Business School graduate tricked fellow students and colleagues into investing at least $2.9 million in a pyramid scheme, according to New York State Attorney General Letitia James.
- James' office announced that it had secured a court order preventing alumnus Vladimir Artamonov from “harming investors through a fraudulent scheme.” Mr. Artamonov claimed to know what kind of investments Berkshire Hathaway was planning and reportedly predicted returns of 500% to 1,000%.
- James' office said it learned of the fraud after being told about an investor who lost $100,000 in Artamonov's alleged scheme and took his own life.
New York State Attorney General Letitia James announced Thursday that a Harvard Business School graduate deceived alumni and colleagues into investing at least $2.9 million in a Ponzi scheme he ran.
James' office claims that Vladimir Artamonov, a fellow graduate student who claimed to know what kind of investments Berkshire Hathaway was planning and predicted returns of 500% to 1,000%, was a “fraud.'' announced that it had secured a court order to prevent it from “harming investors through a fraudulent scheme”.
The Manhattan Supreme Court order also prohibits Mr. Artamonov from withdrawing or transferring funds from his bank or brokerage accounts.
Artamonov allegedly lured at least 29 investors into the scheme, most of whom he met through connections at elite universities, the attorney general said.
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James' office said Artamonov lost millions of dollars in investors' money by buying short-term options, but instead of disclosing the losses, he used newly invested funds to repay existing investors. It is said that he was
“Artamonov also used investor funds to fund unauthorized personal expenses, including vacations, shopping, and meals,” the office said.
James' office said it learned of the fraud after being told about an investor who lost $100,000 in Artamonov's alleged scheme and took his own life.
James' office said in a statement that even after the man's suicide, Artamonov continued to lie about the fund's strategy and performance and to solicit new investors.
“Even sophisticated investors can be fooled by scammers, especially if they use personal relationships or networks to create a false sense of trust,” James said.
“Vladimir Artamonov used his position as a Harvard Business School graduate to appear legitimate and trustworthy while preying on his classmates and others.Instead, he They defrauded people of their investments, with dire consequences.”
Artamonov did not immediately respond to a request for comment. Harvard Business School did not respond to a request for comment.
James' office said Artamonov graduated from business school in 2003 with a master's degree and previously worked as a securities specialist in New York.
From September 2021 to the present, James has raised at least $2.9 million from at least 29 investors for an investment fund called “Project Information Arbitrage” or “Artamonov Fund,” according to his office. It is said that
“Mr. Artamonov identified a number of investors through the HBS alumni network,” the AG's office said. “Many of his investors did not have close personal relationships with him and only knew him as an acquaintance.”
“Mr. Artamonov seduced his clients by claiming that they could see what investments Berkshire Hathaway would make ahead of the market by looking at their public state insurance applications,” the firm said.
James' office said, “Artamonov boasted to investors that he had a private time machine'' and that he could get tomorrow's newspaper today.'' He said he expected a profit.
But in reality, Mr. Artamonov used investor funds to buy short-term options that expire within days of purchase, and “does not appear to have any connection to Berkshire Hathaway or its investment activities. ” the authorities said.
