Categories: US News

Yale Graduate Allegedly Ran Hedge Fund Scam, Raised More Than $1 Million

Federal officials accused a former Yale University student for running an unregistered hedge fund that raised more than $1 million.

Omar Zaki, 21, reportedly made around $1.7 million from 11 clients from January 2017 and February 2018 by selling a biotechnology trading strategy, the Securities and Exchange Commission (SEC) said in a complaint Monday. Zaki allegedly gave investors false information like how he managed a fund worth $3 million.

The fund was started in Delaware in November 2016 and was based in New Haven, Connecticut. It is currently inactive, according to the SEC.

Zaki will pay $25,000 in civil penalties. He did not admit nor deny the SEC’s findings.

The former Ivy League student is not allowed to work for an investment company for three years, after which he can apply for re-entry.

Zaki reportedly graduated with a bachelors in economics and physics from Yale in 2018, Bloomberg reported.

He is unemployed, the complaint said.

Yale did not immediately respond to The Daily Caller News Foundation’s request for comment. The SEC declined to comment.

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Neetu Chandak

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Neetu Chandak

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