In the Tar Heel region, a wolf dressed in sheep’s clothes has been exposed. The Securities and Exchange Commission, or SEC, has hammered a man and company they accuse of orchestrating a multimillion – dollar Ponzi Scheme. What is the name of this man?
Meet Nayeem Chhoudhury. A resident of Durham in North Carolina, Choudhury runs Dream Venture Capital Group LLC, his hedge fund. The SEC took emergency action on July 12, 2023, to stop their operations. Why? Why this sudden action?
Choudhury was accused of playing a game at high stakes with the money of investors, as stated in the SEC’s complaint. He raised $9.3 million from investors, promising them a risk-free hedge fund investment. This promise was as hollow as one made by a politician during election season. He claimed that his fund had a top-notch performance. Was it really top-notch?
The complaint paints an image as dark as a Siberian winter day. Choudhury had a track record of trading losses that reached six and even seven figures. His Dream Venture became a nightmare when he lost $4.8 million on options trading between August 20,22 and June 20,23. Where did the money disappear to?
Choudhury, like a magician who performs a disappearing act, allegedly used the money of new investors to pay existing investors. In May 2023, he bought an expensive luxury vehicle for $85,000. The SEC alleges that Choudhury has only paid back approximately $ 3.5 million to investors since July 2022.
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In its complaint, the SEC accuses Choudhury of violating the Securities Act of 1932 and the Securities Exchange Act of 1934 as well as certain sections of Investment Advisers Act of 1941. The list is like a laundry of financial crimes. Each one is more damning that the previous one.
What is the SEC looking for? They want an asset freeze, temporary restraining orders, injunctions based on conduct, disgorgement and prejudgment penalties plus interest. They want to stop Choudhury’s company from carrying out their alleged scheme. They also want the money that they earned back and they are penalized for their actions.
Matthew McNamara & Justin Jeffries supervise Josh Hess, Tiffany Kunkle, Robert Nesbitt, and the investigation continues. Edward Sullivan will lead the litigation.
This story is a reminder that all that shines may not be gold. gold. It’s sometimes just a carefully crafted scheme to separate hardworking people from their money. It is said that it’s probably true if it seems too good.
What’s next for Choudhury Dream Venture? Only time can tell. One thing is certain, the SEC will be watching. They won’t stop until justice has been served.