Ex-Hedge Fund Manager Pleads Guilty to $9M Investment Scam that Defrauded Investors Nearing Retirement

Tamer Moumen, an ex-hedge fund manager, has pleaded guilty to wire fraud. He now faces up to 20 years in prison for a $9M investment.

Moumen defrauded over 50 investors. Many of his investors were close to retirement age. He advised dozens of them to liquidate retirement accounts, among other investments, and let him handle their funds.

Moumen used their funds to support his own spending, including the purchase of a $1M home, and also to pay back earlier investors. Moumen claimed to manage tens of millions of dollars through Crescent Ridge Capital Partners. He told clients he was a successful trader even though he lacked experience managing hedge funds and had lost money investing in securities before.

In the statement of facts submitted with Moumen’s guilty plea, he admitted to involvement in two fundraising projects to solicit funds for refugees. He commingled the money donated with investor funds in accounts that belonged to him.

Senior Financial Fraud
If you are retired or nearing retirement, you want to make sure that any financial adviser you hire knows what he/she is doing. Because of where you are in your life, you may not want to invest in complex or high risk investments. It is important that your investment adviser understand your financial needs/objectives and invest on your behalf accordingly.

Unfortunately, there are some financial advisers who are inexperienced or may purposely seek to defraud clients. Because investors who are retirees and those nearing retirement age will often have money to invest, fraudsters may try to take advantage of them.

Our elder financial fraud lawyers work with retirees and those nearing retirement who have lost money because they were the victims of investment fraud. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.

Former Hedge Fund Manager Pleads Guilty to $9 Million Investment Fraud, USDOJ, May 12, 2017