Former owner & manager of Dubai-based investment fund found guilty in Manhattan federal court of securities fraud related offensescst.
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Department of Justice
U.S. Attorney’s Office
Southern District of New York
FOR IMMEDIATE RELEASE
Tuesday, October 30, 2018
Former Owner And Manager Of Dubai-Based Investment Fund Found Guilty In Manhattan Federal Court Of Securities Fraud Related Offenses
The first scheme involved a fraud on investors in Maiden Capital LLC (“Maiden Capital”), a hedge fund based in Charlotte, North Carolina. Stephen Maiden was the managing member of Maiden Capital. Between in or about March 2009 and in or about June 2012, AMANAT, along with Maiden and others, devised and carried out a scheme to hide the fact that investments by Maiden Capital in Enable, an investment vehicle owned and managed by AMANAT, had been lost. To facilitate the scheme, Maiden, with AMANAT’s assistance, generated fictitious client account statements that failed to disclose millions of dollars in Enable-related losses.
The second scheme involved accounting fraud at KIT digital (“KITD”), a publicly traded company based in New York, New York, and Prague, Czech Republic. From at least in or about 2009 through in or about 2012, AMANAT, along with Tuzman, KITD’s former CEO, and Robin Smyth, KITD’s former CFO, engaged in an illegal scheme to deceive KITD shareholders, members of the investing public, KITD’s independent auditors, and others concerning KITD’s true operating performance and financial results. Instead of informing KITD’s auditors and investors that millions of dollars that KITD had invested with Enable had been lost or fraudulently misappropriated, AMANAT falsely represented that KITD’s investment with Enable was sound and earning steady interest.
Following the jury’s verdict, the government moved for AMANAT to be remanded into custody because, as alleged by the government, AMANAT attempted to obstruct justice by seeking to procure false bank documents in order to falsely demonstrate that two cooperating witnesses who testified at the trial and the 2017 trial had been paid for their testimony. An evidentiary hearing on this issue commenced and will continue at a later date.
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www.justice.gov/usao-sdny/pr/former-owner-and-manager-dubai-based-investment-fund-found-guilty-manhattan-federal