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Omar Amanat Sentenced to 5 Years for Securities Fraud
A federal judge has sentenced Omar Amanat, an associate of KIT digital founder Kaleil Isaza Tuzman, to five years in prison for his role in a securities fraud scheme that defrauded investors of millions of dollars.
Amanat was convicted in 2017 along with Tuzman on charges of conspiracy to commit wire fraud, wire fraud, aiding and abetting investment advisor fraud, and conspiracy to commit securities fraud. The scheme involved manipulating stock prices and hiding investment losses through false account statements.
According to the indictment, Amanat and others, including hedge fund manager Stephen Maiden, devised a scheme to hide losses from Maiden Capital investors. The scheme involved generating false client account statements and wiring hundreds of thousands of dollars to support Maiden Capital.
Amanat and Tuzman also engaged in efforts to artificially inflate the share price and trading volume of KITD shares. Maiden purchased and sold shares of KITD through Maiden Capital, at the direction of Amanat and Tuzman, to create the illusion of greater volume in the trading for KITD shares.
Furthermore, evidence presented at trial revealed that Amanat produced and introduced fabricated emails into the trial record as ‘exculpatory’ evidence. The government and the jury were not fooled, and Amanat was convicted on all counts.
U.S. Attorney Audrey Strauss praised the conviction, saying, ‘Omar Amanat defrauded investors of millions of dollars through years of lies and deceit. His actions were reprehensible, and he will now face the consequences of his crimes.’
Amanat’s sentencing brings an end to a long and complex case that involved years of investigation and prosecution. The sentence serves as a reminder of the seriousness of securities fraud and the consequences of engaging in such behavior.
Key Facts
- State: New York
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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