U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23244 / April 21, 2015
Securities and Exchange Commission v. Moazzam "Mark" Malik and American Bridge Investment Group, LLC, d/b/a Wolf Hedge LLC, Civil Action No. 15-1025 (RJS) (S.D.N.Y.)
SEC Obtains a Preliminary Injunction Order, Including Asset Freeze, Against Purported Hedge Fund Manager, Moazzam "Mark" Malik
The U.S. Securities and Exchange Commission announced that on April 20, 2015, the Honorable Richard J. Sullivan of the United States District Court for the Southern District of New York entered a Preliminary Injunction Order as to Defendants Moazzam "Mark" Malik, a Pakistani citizen and New York City resident, and his purported hedge fund, American Bridge Investment Group, LLC, d/b/a Wolf Hedge, LLC. Among other things, the Preliminary Injunction Order, pending a final disposition of the action, enjoins defendants from violating the securities laws provisions that the SEC alleges defendants violated, freezes defendants' assets, orders defendants to provide verified written accountings, and prohibits the destruction, alteration, or concealment of documents.
The SEC filed this as an emergency action against defendants on February 13, 2015. The Court entered a temporary restraining order the same day. The SEC's complaint alleges that, since May 2011, Malik deceived investors when he sold them limited partnership interests in his hedge fund, variously known as Wall Street Creative Partners, Seven Sages Capital, LP, American Bridge Investment Group, LLC, and Wolf Hedge LLC. Malik defrauded at least sixteen investors by falsely claiming to be operating a hedge fund open to high net worth, sophisticated investors that consistently yielded high positive rates of return. Malik described his fund to investors as "a privately held Global Investment Management firm dedicated to the individuals and institutions around the world." Malik also claimed that his fund had approximately $100 million in assets under management.
In fact, the complaint alleges, Malik conducted an egregious fraud. Although he raised $840,774 from investors, his fund's trading account, which has been closed since September 2013, never held more than $90,177 in assets. Instead of legitimate investments, Malik misappropriated more than $700,000 of investor funds for his own use while simultaneously ignoring investors' repeated requests to return their funds.
The SEC's complaint charges Malik and his fund with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(b), and charges Malik with violations of Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8. The SEC seeks a final judgment permanently enjoining defendants from violating these securities laws provisions, ordering defendants to disgorge their ill-gotten gains plus prejudgment interest, and imposing civil monetary penalties.
For further information, please see Litigation Release No. 23197 (Feb. 13, 2015).