Former Director of the new York investment Bank PJT Partners Andrew Kaspersen arrested on charges of defrauding investors of more than $95 million, reports channel ABC.
39-year-old Caspersen detained on March 26. After the first appearance in court he was released on bail of $5 million.
During the hearing in Federal court in Manhattan on 28 March, the Prosecutor stated that the banker lied to customers PJT Partners, investing millions of dollars in imaginary shares. He was involved in fraudulent transactions from July 2015 to March 2016.
“To implement his fraudulent scheme by $95 million Kaspersen went on a shameful farce — the creation of fake e-mail addresses, misleading domain names and inventing fictional financiers,” said Federal Prosecutor Prov Bharara in a press statement.
The Prosecutor’s office said that Kaspersen fraudulently solicited funds from investors by promising that their investments will be safe. According to the Ministry, he used funds in the amount of almost $25 million from a charitable Fund to trade securities in his personal brokerage account. However, he lost most of the money, doing aggressive trading. The Fund did not receive back their money.
The Commission on securities and exchange Commission filed against Kaspersen civil charges in order to return money to investors and impose a fine.
If the Caspersen found guilty on both charges, he faces up to 40 years in prison.