Premium Point Investments LP co-founder, CEO and Chief Investment Officer Anilesh Ahuja, as well as two former members of the firm, Amin Majidi and Jeremy Shor, have been slapped with fraud and conspiracy charges following allegations that they mismarked the value of assets they managed in the firm's hedge fund by over $200 million.
The charges, filed by federal prosecutors May 9, claimed that the mismarking was done by fraudulently inflating quotes for some securities from brokers such as Frank DiNucci, who had already testified, pleaded guilty to related charges and agreed to cooperate with authorities.
Inflating the value of assets allowed Premium Point to obtain higher management and performance fees from investors, the filing added. The scheme purportedly lasted from 2014 to 2016.
Ahuja, Majidi and Shor were taken into custody and were subsequently released on bail, Reuters reported. They are expected to return to court May 11.
The SEC also filed related civil charges against the three.
The charges were announced a year after Premium Point's operations were put under investigation for the valuation of structured products and other assets held by the company's funds.