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.
More here – UPI