Indian origin man charged with fraud in US

Vineet Kalucha was charged with fraud and of siphoning investor proceeds to pay for personal expenses.

By: Press Trust of India | New York | Updated: August 3, 2015 12:57:23 pm
jail-m Vineet Kalucha used firm’s money to settle down his personal expenses.

An Indian-origin executive at an investment advisory firm in New York has been charged by the US Securities and Exchange Commission(SEC) with fraud and of siphoning investor proceeds to pay for his luxury car and settle other personal expenses.

Vineet Kalucha, 49, the Chief Investment Officer of Aphelion Fund Management and another executive, has been charged with distributing falsified performance results to prospective investors in two hedge funds managed by them.

The SEC alleges that Kalucha fraudulently altered an outside audit firm’s report reviewing the performance of an investment account he managed.

Kalucha, who is also majority owner and managing partner of the firm, is also charged with siphoning about 40 per cent of the $1.5 million for his personal benefit that the firm raised in 2013.

In response to the SEC charge, US District Court Judge Jed Rakoff has issued a temporary restraining order, imposed an asset freeze to protect client assets and temporarily prohibited the defendants from soliciting new investors or additional investments from existing investors.

A hearing for a preliminary injunction has been scheduled for May 15.

This report is updated as the US District Court Southern District of NY has ordered on 18.6.15, all claims asserted by SEC against other Defendant, in this action be dismissed.”

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