Tag: Corruption

Hedge Fund Co-Founder Sentenced to Prison Avoids Jail Time

hedge fund avoids jail time
Corruption: Hedge fund avoids jail time – pleads guilty of fraud

(Bloomberg) The co-founder of Premium Point Investments and a former trader pleaded guilty to charges they overstated asset values at the now-defunct hedge fund, but they won’t serve any time behind bars.

Anilesh Ahuja, the fund’s co-founder, and trader Jeremy Shor were found guilty of conspiring to overvalue the hedge fund’s assets by more than $100 million and sentenced to prison in 2019.

However, U.S. District Judge Katherine Polk Failla in Manhattan overturned their convictions in December due to errors and misleading statements by prosecutors.

The pair had faced a new trial but reached a deal with the government allowing them to plead guilty to a single securities fraud count.

Under the deal, which was approved by Failla in a hearing on Friday, the two men won’t serve any prison time, pay a fine or serve probation.

Let’s talk about it.


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Hedge Fund gets away with prison time and fees

hedge fund pledges guilty and gets away with prison time

Before their convictions were overturned, Ahuja was sentenced to more than four years in prison and Shor, almost 3.5.

But their surrender dates were delayed, initially due to the Covid pandemic and later because the judge was considering throwing out the verdict.

As a result, neither man served any part of his sentence.

“We are pleased that Mr. Ahuja can finally put this ordeal behind him without having to spend a day in jail,” his lawyers, Richard Tarlowe and Roberto Finzi, said in a statement.

“After years of litigation, we are pleased to put this matter behind us with no additional punishment beyond the punishment already inflicted by the process,” Shor’s lawyer, Justin Weddle, said in an email.

Federal prosecutor Daniel Gitner defended the deal before the judge on Friday, saying Ahuja and Shor had already made “substantial restitution” to investors. 

“Today’s guilty pleas to securities fraud bring to a close the defendants’ scheme to mismark their funds’ books,” U.S. Attorney Damian Williams said in a statement.

“This office stands by this prosecution, and is pleased that this matter has resolved with the defendants’ acceptance of responsibility.”

“Unacceptable errors”

Hedge fund avoids jail time after being sentences to prison – hedge fund pledges guilty

“I tried my hardest to conduct a fair trial,” Failla said in overturning the verdict.

“I no longer have confidence in the fairness of the trial.”

She declined to dismiss the charges against Ahuja and Shor though, saying that the errors made by the government — while “unacceptable” — were not severe enough to warrant throwing out the case.

Ahuja was a senior mortgage bond trader at Lehman Brothers, RBS Greenwich Capital and Deutsche Bank AG for four years before co-founding Premium Point in 2008.

The firm initially focused on the U.S. residential loan market and began amassing bonds backed by distressed assets in the wake of the global financial crisis.

It later expanded into the jumbo loan and home rental businesses and managed about $2 billion of assets at its peak.

Premium Point began winding down in late 2016 after posting large losses.

The fund revealed the following year that federal securities regulators were examining the way it valued its assets.

Its mortgage credit funds filed for bankruptcy protection in March 2018, and Ahuja, Majidi and Shor were charged two months later.

Former Chief Risk Officer Ashish Dole also pleaded guilty and testified for the prosecution at the trial.

The case is U.S. v. Ahuja, 18-cr-00328, U.S. District Court, Southern District of New York (Manhattan), via Bloomberg.

Should hedge funds be allowed to get away with fraud?

It’s curious how these hedge fund co-founders were sentenced to prison but managed to get away with jail time.

What does this tell us about our system?

Why do you think this happened?

Was the government paid out?

I’m interested to know what you think; leave a comment below.


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Organized Crime in Wall Street: Big Money Buys Out Integrity

Organized Crime in Wall Street: Big Money Buys Out Integrity
#Occupywallstreet – Organized crime in Wall Street

It’s no secret Wall Street is known for its predatorial strategies in the finance world.

Retail investors known as the ‘little guys’ have been screaming at our government to take action for decades now.

Words do not fall on deaf ears.

They know all too well what’s going on within our financial system.

See, they’re lobbied to play a role in it.


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Gaslight: They said naked short selling did not exist

Naked Short Selling
Naked short selling is banned in various parts of the world except America

Wall Street has created fake shares in the market to drive the price of a stock down, a term known as naked short selling, for decades now.

The term naked short selling came about in the early 2000s when investors began to notice anomalies within trading activity of specific stocks.

As technology improved, Wall Street found loopholes from which they could exploit other people’s money.

And we’re not just talking about investors here.

They exploited the average people’s money who had pensions.

School teachers and other honest working-class people lost everything.

Companies like EagleTech, Overstock, and Viragen were some of the early targets for naked short selling in the early 2000s.

Shorts drove EagleTech and Viragen’s stock price so low the companies were delisted.

Wall Street profited from delisting a revolutionary technology company that Google now uses tech from.

Viragen was researching cancer.

Naked shorting was ‘banned’ but ‘meme stocks’ uncovered them

Meme stocks wallstreetbets
The retail investor community scales in growth via Reddit’s WallStreetBets

AMC, GameStop, Reddit’s r/wallstreetbets, the ‘ape army’, you’ve heard it all.

What happened decades ago is being uncovered again with GameStop and AMC stock.

Only in this decade the ‘little guys’ aren’t so little anymore.

Social media has allowed the community of retail investors and activists to have a much bigger voice.

Platforms such as YouTube have also given retail investors a medium through which they can raise awareness.

I took it upon myself to use my website to educate the masses.

While the ‘meme stock’ frenzy took over Wall Street, the industry denied the existence of naked short selling.

That is until retail’s message successfully made its way into mainstream media confirming the harm of it on national television.

In the meantime, companies owned by NewsCorp. continue to use the influence of media to drive stocks down.

Short and distort campaigns as explained by Elon Musk allow hedge funds to influence the media by pumping out negative articles on stocks.

Short sellers then take advantage of the drops and profit on the way down.

AMC and GameStop along with other heavily shorted stocks have been victims of this crime.

Hedge funds are trying to cheat themselves out of a potentially and massively large short squeeze.

The Wall Street Conspiracy (2012) Documentary

This documentary on Wall Street is a great introduction to the fight against Wall Street in the early days.

The Wall Street Conspiracy 2012
Link to full video here

The film captivates perfectly the crime on Wall Street and how our government has failed to protect the American people from it.

What’s significant about The Wall Street Conspiracy documentary is that it shows you the root of when government and the media began to get lobbied.

When activists created momentum, the media rescheduled discussing the problems on live television.

When the government was asked to step in, they did so only after the damage had already been done.

Today, financial institutions lobby congress who write the laws.

They’re writing the rules to the very own game their playing!

Watch Gary Gensler’s reaction to Jon Stewart’s statement in this short clip below.

Financial institutions lobby congress – Can we fix the stock market?

More on Gary Gensler and the SEC below.

Mainstream media gets their cut from Wall Street in “short and distort”

Wall Street Journal and affiliates are indirectly owned and influenced by Hedge Funds
Wall Street Journal and affiliates are indirectly owned and influenced by Hedge Funds

This ring of short sellers branches out to the media as well.

Remember, it’s an organized crime and is structured to work.

News Corp. owns Wall Street Journal, Market Watch and Barons just to name a few media platforms.

All of which have engaged in short and distort strategies to drive the price down of GameStop and AMC stock.

The conflict of interest is alarming considering Ken Griffin’s Citadel owns millions of shares of News Corp.

Citadel is on the list of top 10 financial institutions shorting AMC Entertainment Holdings stock.

The hedge fund lost billions of dollars last year betting against the theatre chain when retail investors bought the stock en masse.

The hedge fund/market maker has yet to close their positions.

Tesla and SpaceX CEO Elon Musk has expressed his animosity towards both short sellers and the SEC themselves for not taking enough action.

Elon has been one of the biggest influencers speaking out on these issues.

He discusses “short and distort” in this exclusive interview with CNBC.

What progress has today’s retail community achieved?

AMC Entertainment
AMC – Against Market Corruption, as seen on Twitter

Today’s retail community has:

  • Brought naked short selling to the mainstream media
  • Uncovered high dark pool trading volume
  • Saved AMC Theatres and GameStop from collapsing
  • Sparked a trending curiosity in stock investing
  • Made a statement to Wall Street, RETAIL ISN’T LEAVING

Retail investors have spread the message across message boards online and across all of social media.

Flying banner signs have been made and flown around the country raising awareness of the ‘ape movement’.

Billboard signs have been bought out to further amplify the message.

Various documentaries are coming out on this developing worldwide event.

The ‘ape’ community is made up of both millennials and boomers of all backgrounds.

Wes Christian has joined the fight again educating retail investors on his expertise in the markets.

He was a strong advocate in the early 2000s and has demonstrated his support for this movement.

Let’s dive into what regulators are proposing right now.

What are regulators doing about the crime in Wall Street?

Wall Street

Regulators have been ‘monitoring’ naked short selling activity for over a year now.

The FBI raided hedge fund Muddy Waters in December of 2021 for flooding the market with fake orders to drive the price of stocks down.

This is a term known as ‘spoofing‘ the market.

Banks such as Morgan Stanley and Goldman Sachs received subpoenas earlier this year.

Several hedge funds are also being investigated by the Justice Department.

Citron and Citadel are two of the biggest hedge funds under scrutiny by the DOJ.

Regulators are investigating colluding between hedge funds and banks.

Illegal short selling activities are one of many fraud investigations.

Gary Gensler says 90%-95% of retail market orders are not processed through the lit exchange

Gary Gensler SEC Chairman and Commissioner

SEC chairman Gary Gensler said in a Bloomberg exclusive earlier this year that up to 95% of retail market orders are processed in dark pools.

This means for every dollar retail puts in the market only 5%-10% of that dollar is accounted for your bet.

The 90%-95% of your dollar is used against you by short sellers.

Wall Street has been picking the pockets of millions of investors for decades now and the SEC knew about it.

When the ‘ape’ community brought the high dark pool trading volume to light regulators simply couldn’t deny it.

The SEC has the power to ban dark pool trading, so why don’t they?

The only explanation that comes to mind is lobbying.

Jon Stewart referred to Gary Gensler as a sheriff that’s been outgunned.

To which Gensler responds that the SEC is not properly funded.

So, if the government isn’t properly funding the SEC, does that leave room for financial institutions to step in and ‘fund’ them instead?

You tend to get a sense of when someone is truly dedicated to their mission and Gensler is not.

The SEC Commissioner simply wants to keep his job.

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SEC highlights market transparency proposals

SEC market transparency

The SEC released a market transparency report that highlights proposals that could protect retail investors from market manipulation.

In short, the SEC would be micro-managing short selling activities.

This type of monitoring is believed to refrain hedge funds from naked short selling.

If the proposals are enforced, it will be a massive victory for the retail community.

However, retail investors are skeptical of the SEC enforcing anything at all.

Actions speak louder than words and retail investors have not seen any changes in the markets for over a year since the ‘meme stock’ frenzy.

Market makers and brokers colluded last year to remove the buy button when AMC and GameStop began to soar in January.

The manipulation sparked a movement.

And in my opinion, will start a revolution if suppression on these heavily shorted stocks isn’t lifted.

90% of retail investors now own AMC Entertainment stock according to CEO Adam Aron.

So how is the price trading so low?

Naked short selling is the issue.

The question is, will regulators take action now or when it’s too late?

Who’s responsible and how did this get out of hand?

Big banks and financial institutions with money buy influence.

They buy the influence of the media and policy/lawmakers.

The term in the United States is referred to as lobbying.

In Mexico they call the act of bribing politicians in power corruption.

There are many parties involved of which none have served jail time nor been held with accountability.

How could they when bail is so easy for these massive institutions to pay anyway?

Lobbying usually comes in the form of ‘donations’, either to a party or institution.

SEC Commission Hester Pierce who voted no on market transparency belonged to an anti-regulatory party that compensated her outside of her career’s salary.

We see this corruption everywhere.

Gary Gensler himself is worth more than $100 million according to Bloomberg sources.

Nancy Pelosi is notorious for insider trading.

She’s amassed an almost $200 million net worth on a $190k salary.

Government officials are getting richer, and Americans need to remove them from power.

Organized crime stops from within


We need honest people running the finances and government in our country.

If the government continues to grow richer, the population as an entirety will not stand a chance against systemic risks.

We the people decide who’s fit to run our country’s finances, and Wall Street is not it.

We also decide which politicians deserve a spot in government and many are not cut out for it.

It’s time for a new generation with integrity to step in and do what’s humanly right.

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