On December 26, 2017, after a six-week trial presided over by U.S. District Judge Paul G. Gardephe of the Southern District of New York, a federal jury found Kaleil Tuzman, former chairman and CEO of technology start-up company KIT digital (“KITD”), and Omar Amanat guilty of various securities fraud-related offenses in connection with three separate fraudulent schemes.  First, between in or about February 2009 and in or about June 2012, Amanat, along with Stephen Maiden, the managing member of Maiden Capital, an unregistered investment advisory firm, engaged in a scheme to hide investment losses from Maiden Capital investors.  Second, between in or about December 2008 and in or about September 2011, Tuzman, Maiden, and Amanat engaged in a scheme to manipulate KITD stock prices and create an illusion of greater trading volume for KITD shares.  Tuzman instructed Maiden to purchase and sell KITD shares through Maiden Capital.  Finally, from at least in or about 2010 through in or about 2012, Tuzman and others engaged in an accounting fraud scheme that inflated KITD’s revenue falsely.  Tuzman was convicted of a variety of offenses relating to his participation in the market manipulation scheme and accounting fraud scheme.  Further, Amanat was found guilty of various offenses relating to his participation in the market manipulation scheme.  Amanat will be sentenced by Judge Gardephe on April 25, 2018 and Tuzman will be sentenced by Judge Gardephe on April 26, 2018.  United States v. Tuzman et al., 15-cr-536 (S.D.N.Y.)

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