NEW YORK, Feb. 14 (UPI) -- A former New York Police Department traffic agent and waiter who posed as a successful hedge fund manager to dupe clients out of nearly $1 million was charged with fraud and grand larceny.
Investigators said Moazzam "Mark" Malik, 33, used investors' money for vacations, spa visits, jewelry and a subscription to a matchmaking web site. When investors wanted their money back, he claimed he was dead.
New York Attorney General Eric Schneiderman initially accused Malik of stealing $250,000 from five investors from 2011 to 2015, but after investigating, The Securities and Exchange Commission in its complaint said Malik stole nearly $850,000 from 16 investors since 2011.
Authorities said Malik, who ran Seven Sages Capital, L.P. And Wolf Hedge, LLC, attracted investors using brazen tactics, including lying to Bloomberg and BarclayHedge, a hedge fund data tracker, about his successes. In March 2011, Bloomberg identified Malik as a rising fund manager, based on information Malik provided, the SEC said. BarclayHedge awarded Malik with a 'gold star' for claims about his performance.
He never made real investments with funds, instead using the money for personal use, authorities said. To keep his companies going, he issued false earnings statements.
"By pretending to be a successful hedge-fund manager, Malik conned investors into bankrolling his lavish lifestyle," Andrew M. Calamari, director of the SEC's New York Regional Office, said at Malik's arraignment in Manhattan Supreme Court.
Over the years, several clients wanted their money back, but Malik continually put them off, including lying that he was dead, investigators said. In one email, he claimed to be Malik's associate, named Courtney.
"Mr. Malik has been [sic] passed away with the heart attack after accident. We will dissolve the fund shortly," he wrote under the name Courtney, the SEC said.
He is being held on $1 million cash bail.
I am currently writing 3 books 1) On Start ups 2) Hedging Strategies and 3) On Human Nature— Mark Malik (@wolfhedge) October 27, 2014
Is it good time to get in the market ? I would say yes! pic.twitter.com/rGgStmWL8J— Mark Malik (@wolfhedge) October 11, 2014