The Securities and Exchange Commission alleges that New York City based Moazzam “Mark” Malik falsely claimed to be operating a hedge fund with approximately $100 million in assets under management, but his fund never made real investments and never held more than $90,177 in assets.
Although he raised $840,774 from investors, Malik continually withdrew the cash and spent it as his own, says the SEC.
“Besides luxury travel, dining and jewelry, investor funds paid for Malik’s continuing education courses at Harvard and his subscription to a matrimonial matching Web site,” said Andrew M. Calamari, director of the SEC’s New York regional office.
Despite repeated demands from investors for the return of their money, Malik refused or delayed most their redemption requests.
He allegedly went so far as to create a fictitious fund employee who sent one investor an e-mail claiming that Malik had died, according to the charges. The fake employee held the title of “Investor Relations, Wolf Hedge LLC.” In the e-mails, Malik included a photograph of a woman that he copied off the Internet. The real-life woman in the photo does not know Malik and never authorized the use of her image in the e-mails.
According to the SEC’s complaint, Malik has been continuing to solicit investors amid the redemption requests. His fund has changed its name several times since he created it in 2010. Malik initially called it Wall Street Creative Partners before changing it to Seven Sages Capital LP and then American Bridge Investment Group LLC. Most recently it has been known as Wolf Hedge LLC.