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A New York court has shut down an alleged Ponzi scheme run by a Harvard MBA who solicited money from fellow graduates of the prestigious US business school, after raising more than $2.9 million.
New York Attorney General Letitia James said Thursday that her office obtained a court order to freeze funds controlled by Vladimir Artamonov, after it was alerted of the suicide of one of his clients who lost $100,000.
This case highlights how even people with advanced business studies can be vulnerable to financial fraud and the use of marketing techniques that prey on alumni networks.
Artamonov raised money from at least 29 people, many of whom he met through his connections with Harvard Business School, James said. “Even sophisticated investors can be deceived by scammers, especially when personal relationships and networks are used to build a false sense of trust,” she said.
“Vladimir Artamonov used his status as a Harvard Business School graduate to prey on colleagues and others while appearing legitimate and dependable. Instead, he was scamming people out of their investments, with horrific consequences. Today, we put an end to this scheme and encourage anyone who has been defrauded to come forward.” Come to my office.”
Artamonov graduated with an MBA from Harvard in 2003, and from 2021 has sought investors for the Project Information Arbitrage fund, which has forecast returns of up to 1,000 times by claiming to be able to identify pre-market investments that Berkshire Hathaway will make from General government insurance filings.
Instead, he bought unrelated short-term options that caused him to quickly lose money, raising new money to compensate previous investors seeking refunds while spending some of the money on unauthorized vacations, shopping and dining, the prosecutor said.
James obtained a preliminary injunction prohibiting Artamonov from “providing financial services, engaging in fraudulent conduct, and withdrawing and transferring funds from his bank accounts” as well as requiring him to provide records of his investigations. She called on other investors to come forward and file complaints.
A Harvard Business School spokesperson said: “We learned of this today. No further comment.”
Artamonov did not respond to requests for comment. His LinkedIn profile shows that he also studied as an undergraduate at the Wharton Business School. He worked as an investment analyst at Greenlight Capital in New York until 2008.
