Vladimir Artamonov, a Harvard Business School alumnus, was charged with orchestrating a multimillion-dollar Ponzi scheme that targeted his classmates and alumni network, according to an indictment unsealed by officials from the Southern District of New York. Jay Clayton, United States Attorney for the Southern District of New York, and Christopher G. Raia of the New York FBI office announced Artamonov's charges, which include securities fraud, investment adviser fraud, and wire fraud. The case has been made public following Artamonov's arrest in Elkridge, Maryland, as reported by the U.S. Attorney's Office.
Artamonov, 46, is accused of defrauding investors out of more than $4 million through a venture he called "Project Information Arbitrage." The scheme was based on false claims that he had access to nonpublic information about Berkshire Hathaway Inc.'s market activity, which he said would generate substantial returns with minimal risk. Relying on his Harvard affiliations and professional background to gain investors’ trust, Artamonov instead used the funds for high-risk options trading that largely resulted in losses, a fact concealed from the investors as revealed in a press release.
Representing the government, U.S. Attorney Jay Clayton sharply criticized Artamonov's actions, stating, “As alleged, Vladimir Artamonov betrayed investors, including friends and former Ivy League classmates, by promising a low-risk, high-return investment strategy, when in fact he gambled away investor money and paid off previous investors to continue his scheme,” in a statement obtained by the U.S. Attorney's Office. Meanwhile, FBI Assistant Director Christopher G. Raia noted the exploitation of a respected university's prestige to carry out these unlawful activities.
According to the indictment, the roughly $4 million raised for Artamonov’s project was mostly lost within days of receipt, with less than $400,000 returned to investors. Funds intended to generate legitimate returns were instead spent on personal expenses, including lodging and alcohol. While the charges remain allegations at this stage, Artamonov faces up to 20 years in prison if convicted of securities fraud, along with potential additional time for related offenses, as laid out by the U.S. Attorney's Office announcement.
The New York Attorney General’s Office has also filed a civil case against Artamonov, an action acknowledged with appreciation by Mr. Clayton. The prosecution is being led by Assistant U.S. Attorney Varun A. Gumaste. As the legal process continues, Artamonov is presumed innocent until proven guilty, in accordance with the U.S. justice system.
