US regulators freeze NRI’s assets for fraud

CRIiahmdA US court ordered federal regulators to freeze the assets of Iftikar Ahmed, 43, an IIT Delhi and Harvard alumnus, who has been charged with fraud in which he allegedly obtained some $65 million in ill-gotten gains while he worked at a Connecticut venture capital firm.

Ahmed who is already facing insider trading charges, was charged with fraud in May by the SEC who confirmed the court order to freeze his assets, including that of relief defendants including Ahmed’s wife.

Ahmed used a variety of fraudulent devices for his schemes including overstating the prices of investments in companies that he presented to his firm, and by altering documents, then pocketing the difference. He also used fictitious invoices for purported expenses and pocketed the monies that he eventually transferred into accounts held in his name and the names of family members and other related entities.

The SEC wants a final judgment ordering Ahmed to pay penalties, return the ill-gotten gains with prejudgment interest, and be subject to permanent injunctions from future violations of the anti fraud laws.

Ahmed also faces separate insider trading charges in relation to the 2013 proposed acquisition of Cooper Tire and Rubber by India’s Apollo Tyres.