Court Grants Summary Judgment Motion against Connecticut-Based Investment Professional
Litigation Release No. 24110 / April 12, 2018
Securities and Exchange Commission v. Iftikar Ahmed, et al., Civil Action No. 3:15-cv-675 (JBA) (D.Conn.)
On March 29, 2018, a federal district court in Connecticut granted the SEC's motion for summary judgment as to the liability of a Greenwich, Connecticut investment professional alleged to have fraudulently diverted money from the venture capital funds he advised.
The SEC's action alleges that Iftikar Ahmed, formerly a general partner at a venture capital firm with offices in Connecticut, used fraudulent and deceptive means to divert into his personal bank accounts more than $67 million from ten different venture capital investments. In its ruling on the SEC's summary judgment motion, the court found that, with respect to each of the ten investment deals, Ahmed violated certain anti-fraud provisions and related rules of the Investment Advisers Act of 1940, the Securities Exchange Act of 1934 and/or the Securities Act of 1933. In the same ruling, the court also denied summary judgment motions filed by Ahmed and relief defendants.
The SEC's action against Ahmed was originally filed in early May 2015. At that same time, the SEC also secured an order freezing Ahmed's assets in order to compensate harmed investors and assess potential penalties. Ahmed fled the country shortly after the SEC filed its action.
The question of remedies will be decided at a later stage. The Commission is seeking permanent injunctions against future violations of the securities laws, disgorgement, civil penalties, and prejudgment interest.
The SEC appreciates the assistance of the U.S. Attorney's Office for the District of Connecticut, the U.S. Attorney's Office for the District of Massachusetts, and the Federal Bureau of Investigation.
For further information, see Litigation Release No. 23260, May 13, 2015; Litigation Release No. 23324, August 20, 2015; the Second Amended Complaint filed on April 2, 2016; the Court's ruling on all parties' motions for summary judgment on liability entered on March 29, 2018.