Yale grad accused of running hedge fund scam while in school

This is one college side hustle a recent Yale grad might be regretting.

Omar Zaki, 21, ran a hedge fund while enrolled at the Ivy League university, saying his firm relied on an algorithm that had produced eye-popping returns over a 10-year period, according to the Securities and Exchange Commission. That would make him roughly 11 years old when trading got started.

The lie is one of many that Zaki allegedly told investors, the SEC said in a Monday complaint. In reality, the fund never used the algorithm, misled investors about how much money it managed and wrongly reported returns in excess of 80 percent from December 2016 through early March 2017, according to the SEC.

Zaki, who told investors he managed $3 million, raised $1.7 million from 11 clients from January 2017 to February 2018 by marketing a biotechnology trading strategy.

He settled the SEC's allegations without admitting or denying its findings, agreeing to pay a $25,000 fine. Perhaps in sympathy to Zaki's financial status as a recent college grad, the SEC is letting him pay in installments of $2,083.33 over three years. In the settlement, the regulator said Zaki is currently unemployed.

Read more: https://www.courant.com/news/connecticut/hc-news-yale-grad-hedge-fund-scam-20190402-7iqg5jepozadxguljijgyvhy3m-story.html

I guess Omar didn't have to take a class in ethics?