A Greenwich, Conn. man was indicted today in U.S. District Court in Boston in connection embezzling $54 million from the private equity firm for which he worked.
Iftikar Ali Ahmed, aka Ifty, 44, was indicted on four counts of wire fraud and three counts of making false statements on income tax returns.
Currently a fugitive from justice, Mr. Ahmed was charged in a separate scheme in April 2015, and fled the county while on pre-trial release.
The indictment alleges that between 2004 and April 2015, Ahmed embezzled more than $54 million from the private equity firm for which he worked as a general partner and fund manager.
Ahmed embezzled the money through an elaborate scheme to defraud in which he submitted false invoices, substantially overstated the prices of international business deals he orchestrated on behalf of his employer, and by setting up fraudulent bank accounts in the name of the private equity firm for which he worked and the companies in which his employer invested. The indictment further alleges that Ahmed used the proceeds of his fraud to purchase a $9.6 million residence in Greenwich, and a luxury condominium in New York for approximately $8.6 million.
On one occasion in November 2014, it is alleged that Ahmed recommended to his private equity firm that it invest $20 million in an international company and justified the price by submitting fraudulent financial documents. At the same time, Ahmed informed the international company that his employer had agreed to purchase shares for $2 million. The indictment alleges that Ahmed then directed the private equity firm to wire $2 million to another company and the remaining $18 million to an account that Ahmed falsely claimed was the company’s account, but actually belonged to Ahmed. The indictment further alleges that on Jan. 12, 2015, Ahmed transferred the $18 million in fraud proceeds to his spouse and a portion of these funds was used to purchase a luxury condominium in New York City.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 on each count. The charge of making false statements in income tax returns provides for a sentence of no greater than three years in prison, one year of supervised release, and a fine of $1 million on each count.
Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division in Boston, made the announcement on Wednesday. The case is being prosecuted by Assistant U.S. Attorney Neil J. Gallagher, Jr. of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.