On October 23, 2017, the Honorable Anthony J. Trenga of the Eastern District of Virginia sentenced former hedge fund manager Tamer Moumen to 10 years’ imprisonment, after Moumen pled guilty to wire fraud in May 2017 in connection with a $9.5 million investment scheme.  Moumen, the founder of Crescent Ridge Capital Partners, was additionally ordered to forfeit $9.5 million and to pay $7.5 million in restitution to victims.  According to documents filed with the court, Moumen defrauded more than 45 clients between 2012 and 2017, in part by falsely claiming to have an index-beating track record and to manage tens of millions of dollars.  Moumen reportedly encouraged many of his clients to liquidate retirement accounts and other investments, failing to disclose that he lacked experience in investment management and had in fact lost money trading securities.  Additionally, Moumen was alleged to have used investor funds to cover personal expenses and to pay redemptions to other investors.  Moumen was further alleged to have misused funds raised for charitable causes by commingling the funds with investors’ monies and using donated funds for personal expenses.  U.S. v. Moumen, 17-cr-77 (E.D. Va.)

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