Founder And Previous Main Investment Officer Of New York Dependent Investment decision Adviser Charged With Securities Fraud And Obstruction Of Justice | USAO-SDNY

Damian Williams, United States Lawyer for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Place of work of the Federal Bureau of Investigation (“FBI”), introduced that JAMES VELISSARIS, the founder and previous main investment decision officer of Infinity Q Money Management (“Infinity Q”), a New York centered financial commitment adviser that ran a mutual fund and a hedge fund that purported to have about $3 billion in assets beneath administration, was charged with securities fraud and obstruction of justice for orchestrating a plan to lie to buyers and falsify documents.  VELISSARIS created bogus and misleading statements to investors and some others relating to Infinity Q’s system for valuing sure about-the-counter (“OTC”) spinoff positions that designed up a substantial portion of the holdings of the mutual and hedge cash, and also fraudulently mismarked those securities in approaches that did not mirror their fair price. VELISSARIS fully commited the mismarking plan in buy to inflate the worth of the investment decision funds as claimed to buyers, to attract and keep funds, and to maximize his very own payment. In order to steer clear of detection of the scheme, VELISSARIS provided the two Infinity Q’s auditor and the Securities and Trade Fee (“SEC”) with falsified or altered documents, together with providing the auditor with altered term sheets that served to supply fabricated support for the fraudulently inflated values.  VELISSARIS surrendered to FBI agents in Atlanta, Georgia this morning and is expected to be introduced afterwards right now.

U.S. Legal professional Damian Williams reported:  “As alleged, James Velissaris violated his obligation to place the pursuits of his buyers ahead of his personal revenue.  In purchase to appeal to and keep investments in the funds that he operated, Velissaris lied about the independence of the method

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Justice Department seizes $3.6B in bitcoin in its major finance bust at any time

Authorities explained they seized stolen bitcoin by getting access to the non-public keys of a electronic wallet that contained the cryptocurrency.


Angela Lang/CNET

The US Justice Department seized on Tuesday $3.6 billion in bitcoin that it claims is connected to the 2016 hack of the Hong Kong cryptocurrency trade Bitfinex, which was just one of the world’s most important crypto corporations. Authorities also arrested two persons in Manhattan, charging them with conspiracy to launder cryptocurrency stolen all through the hack. The bitcoin total taken in the hack is now valued at $4.5 billion.

Officers seized about 94,000 bitcoin from Ilya Lichtenstein, 34, and his spouse, Heather Morgan, 31. The DOJ stated that the seized bitcoin are valued at $3.6 billion, generating this the most significant money seizure in the department’s historical past. The seizure demonstrates that regulation enforcement can follow dollars by way of the blockchain, the DOJ mentioned.   

“We will not allow cryptocurrency to be a safe and sound haven for cash laundering or a zone of lawlessness in our economic technique,” Kenneth Polite Jr., assistant attorney typical for the DOJ’s criminal division, said in a assertion.

As momentous as the bust is, Morgan has garnered a large amount of money of interest for the reason that of her odd on the net past. On her LinkedIn profile, she describes herself as an economist, entrepreneur and irreverent rapper. That’s led to viral sharing of articles or blog posts she’s written for the likes of Forbes, together with 1 titled: “Gurus share tips to defend your business from cybercriminals.” That short article consists of comments from BitGo, which delivered safety assist for Bitfinex at the time of the

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