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Omar Zaki has been identified as the 21-year-old student at prestigious Yale University who allegedly ran a hedge fund scheme while attending the school as a student.
According to reports, the 21-year-old Zaki allegedly misled investors with prospectuses that contained false information about his trading history, his fund’s growth and management team from December 2016 until March 2017.
The Securities and Exchange Commission says that Zaki also inflated the fund’s assets, giving presentations that claimed the fund’s assets totaled between $2 million and $5 million.
However, the financial assets under Zaki’s management were never more than $1.3 million. The SEC said that the scheme was uncovered after a pair of investors that were considering getting into business with Zaki “asked to verify the fund’s bank and brokerage account balances directly with the custodians,” according to CBS News.
On Monday, April 1, Zaki — who graduated from Yale in 2018 with a bachelor’s degree in economics and physics — settled with the SEC, agreeing to pay the SEC a $25,000 fine. Because Zaki is unemployed, the SEC will allow him to pay his fine in installments of $2,083.33 over a three-year period.
Additionally, Zaki accepted a three-year ban from working as an investment adviser.
That said, Zaki has yet to confirm nor deny the allegations made against him.
Yale University, a private Ivy League university in New Haven, Connecticut that was founded in 1701, is the third-oldest institution of higher education in the United States and one of the most prestigious schools in the country.
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