Court Enters $64 Million Judgment Against Connecticut-Based Investment Professional
Litigation Release No. 24305 / October 3, 2018
Securities and Exchange Commission v. Ifitikar Ahmed, et al., Civil Action No. 3:15-cv-00675-JBA (D.Ct., filed May 6, 2015)
On September 27, 2018, a federal district court in Connecticut ordered a Greenwich, Connecticut investment professional charged by the Securities and Exchange Commission with fraudulently diverting tens of millions of dollars from the venture capital funds he advised, to pay over $64 million.
The final judgment ordered Iftikar Ahmed to pay $41.9 million in disgorgement, $1.5 million in interest, and a $21 million civil penalty, and turn over interest and returns on frozen assets. The SEC had previously obtained a court-ordered asset freeze and preliminary injunction restraining Ahmed's assets as well as those of his wife, who was named by the SEC as a relief defendant. In doing so, the court found that the "assets belong to Mr. Ahmed and were placed in the names of Relief Defendants as nominees only, in an effort to protect and hide the fraudulently obtained assets." The judgment also prohibits Ahmed from violating the anti-fraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act.
The SEC appreciates the assistance of the U.S. Attorney's Office for the District of Connecticut.