Tamer Moumen, 39, pleaded guilty May 12 to wire fraud in connection with his misuse of clients funds, some of which were invested through a purported hedge fund called Crescent Ridge Capital Partners. U.S. Attorney for the Eastern District of Virginia Dana Boente announced.
According to the statement of facts filed with the plea agreement, Moumen, of Leesburg, defrauded over 50 clients between 2012 and 2017. Moumen falsely told his clients he was a successful trader who consistently beat the S&P500 and was overseeing tens of millions of dollars through his company, Crescent Ridge Capital Partners.
Moumen encouraged dozens of clients, many who were nearing retirement age, to liquidate other investments and retirement accounts, and invest with him. Failing to disclose to his clients he had no experience managing a hedge fund, and a history of losing money in the securities market.
Investigators were able to uncover Moumen was relying on investor money to support his lifestyle and pay personal expenses. He used client funds to help finance the purchase of a million dollar personal residence in Leesburg, new Tesla and repay old investors. In nearly all instances, Moumen lost or spent his clients’ money within a matter of weeks or months of their original investment; while fraudulently leading his clients to believe their investments were steadily growing by sending fictitious statements.
Beginning in 2015, Moumen was involved with two fundraising efforts that solicited donations to benefit refugees, including a GoFundMe campaign and the Northern Virginia Refugee Fund. Moumen had sole control of the donated funds, some of which he transferred into accounts in his name, where the money commingled with investor funds. According to the statement, Moumen used money from these accounts to pay personal expenses.
Boente and Andrew Vale, Assistant Director of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Katherine L. Wong prosecuted the case.