Millionaire Investment Advisor Charged in Multimillion-Dollar Securities Fraud Scheme

New York, NY – February 23, 2023

Fred Elmaleh, aka ‘Frederic Elmaleh,’ the founder and manager of Elm Tree Investment Advisors LLC, was arrested this morning in Florida on securities fraud and wire fraud charges stemming from his and Chief Operating Officer Ahmad Naqvi’s scheme to defraud investors in multiple funds created and controlled by Elmaleh and Naqvi.

According to the U.S. Attorney’s Office, Elmaleh and Naqvi raised more than $17 million from over 50 investors in four limited partnerships for which Elm Tree Investment Advisors LLC acted as the fund manager. The funds, Elm Tree Investment Fund, LP; Elm Tree Emerging Growth Fund, LP; Elm Tree ‘e’Conomy Fund, LP; and Elm Tree Motion Opportunity, LP, promised investors high returns by investing in pre-IPO shares of companies like Twitter, Inc., Alibaba Group Holding Limited, and Uber Technologies, Inc.

However, the U.S. Attorney’s Office alleges that Elmaleh and Naqvi did not invest the money as promised and instead used it to fund their own lavish lifestyles. Elmaleh was presented in federal court in Fort Lauderdale, Florida, before United States Magistrate Judge Alicia O. Valle.

The U.S. Attorney’s Office also alleges that Elmaleh and Naqvi came to the attention of law enforcement after an investigation by the El Dorado Task Force and the SEC.

Elmaleh faces charges of securities fraud and wire fraud. His current status is pending.

The case is being investigated by the El Dorado Task Force and the SEC.

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