SEC Fines Yale Student for Misrepresenting His Hedge Fund to Investors

April 4, 2019 James Heinsman Hedge Fund News

The SEC has come to a settlement with Yale graduate Omar Zaki, claiming that while an undergraduate he had misled investors about the particulars of his hedge fund.

Now 21 years old and living in New York City without a job, Zaki will have to pay the SEC $25,000 over three years and is barred from working in the investment industry for the same period.

According to the SEC filing, Zaki lied to his customers about his fund’s performance, strategy, and size. He claimed that he was managing $3 million and using an algorithm to manage that money. The SEC says Zaki only raised $1.7 million from 11 investors. He also told his clients he had an 80% return in a biotech portfolio.

Zaki stated that the fund had a trading history beginning in December 2016 until April 2017, but the SEC found that the fund only began trading in June 2017.

Zaki neither admitted guilt or denied it.

SEC, Yale University, Zaki Omar,

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