Former Hedge Fund Manager Pleads Guilty to $9 Million Investment Fraud

Eastern District of Virginia
FOR IMMEDIATE RELEASE
Friday, May 12, 2017
Former Hedge Fund Manager Pleads Guilty to $9 Million Investment Fraud
ALEXANDRIA, Va. – A Leesburg man pleaded guilty today to wire fraud in connection with his misuse of clients funds, some of which were invested through a purported hedge fund called Crescent Ridge Capital Partners.

According to the statement of facts filed with the plea agreement, Tamer Moumen, 39, defrauded over 50 clients between 2012 and 2017. Moumen falsely told investors that he was a successful trader who consistently beat the S&P500 and was overseeing tens of millions of dollars through his company, Crescent Ridge Capital Partners. Moumen encouraged dozens of clients, including many who were nearing retirement age, to liquidate their other investments and retirement accounts, and invest with him. Moumen did not tell investors that he actually had no experience managing a hedge fund, had a history of losing money in the securities market, and was relying on investor money to support his lifestyle and pay personal expenses. For example, Moumen used investor money to help finance the purchase of a $1 million personal residence in Leesburg, Virginia, a new Tesla, and to repay old investors. In nearly all instances, Moumen lost or spent his clients’ money within a matter of weeks or months of their original investment, but would conceal those facts by providing statements that showed the investment as steadily growing.

According to the statement of facts filed with the plea agreement, beginning in 2015, Moumen was involved with two fundraising efforts that solicited donations to benefit refugees, including a GoFundMe campaign and the Northern Virginia Refugee Fund. Moumen had sole control of the donated funds, some of which he transferred into accounts in his name, where the money was commingled with investor funds. Moumen used money in these accounts to pay personal expenses.

Moumen faces a maximum penalty of 20 years in prison when sentenced on July 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Katherine L. Wong is prosecuting the case.

A copy of this press release is located on the website of theU.S. Attorney’s Officefor the Eastern District of Virginia. Related court documents and information is located on the website of theDistrict Courtfor the Eastern District of Virginia or onPACERby searching forCase No. 1:17-cr-77.

 

Another StockTwits “Hedge Fund Manager”
StockTwits “Hedge Fund Manager”

Tamer Moumen was tired of being a pizza delivery driver for Dominoes Pizza. He always wanted to be one of those fancy hedge fund managers. With their yachts, Champaign, and never ending shrimp cocktail. He was ready to be the person his wife and kids could be proud of. And so Tamer created a company named Crescent Ridge Capital Partners (CrescantRidgeFunds.com)and began populating the website with a never ending stream of winning day trades.

Next, Tamer created aStockTwits profile pageand used the StockTwits handle ‘Hedgetamer’ to push his supposed amazing trading performance. Emulating the same strategy as 2waytrading.com, Tamer created hundreds of fake StockTwits user accounts that consistently proclaimed his trading greatness to the world.

Finally, Tamer began offering his ‘Hedge Fund’ through paid advertisements on StockTwits.com. And StockTwits was only too happy to take his money and promote his ‘investment services’.

As you can imagine the trading abilities of a Dominoes Pizza deliveryman was not very good. In fact, Tamer never even traded! From 2012 through April 2017, with the help of aggressive StockTwits advertisements…Tamer Moumen was able to convince over 50 customers to invest $9,000,000.

As fast as Tamer received money from investors, he would spend it on luxury items including a $1 million dollar home in Virginia and a new Tesla. Finally, during the first few months of 2017, after clients could not withdraw funds…the FBI stepped in. Immediately,Tamer admitted that the entire “hedge fund” was a fraud. Tamer Moumen plead guilty on May 12, 2017, will be sentenced on July 28, 2017.

Thank you StockTwits for promoting this amazing investment opportunity.

 

Scumbags!

 

Well, Tamer dreamt big and he did something for it. What I never really get, don't these guys have an escape plan?? They are smart enough to pull off the scam but stupid enough to go to jail for it? Instead of a Tesla, he should have bought a freaking plane ticket to somewhere far...