MBA
MBA Career: Avoiding Ponzi Schemes and Fraudulent Activities
Last Updated on March 2, 2024 by Robert C. Hoopes
New York State Attorney General Accuses Harvard Business School Graduate of Running $2.9 Million Ponzi Scheme
Harvard Business School graduate Vladimir Artamonov is facing accusations from the New York State Attorney General Letitia James for allegedly operating a $2.9 million Ponzi scheme. Artamonov reportedly tricked investors by promising returns of 500% to 1,000% by claiming to have insider knowledge of Berkshire Hathaway’s investment plans.
Three of Artamonov’s Harvard classmates, including Mei Shibata and Arndt Nicklisch, provided affidavits against him. James has warned that even sophisticated investors can fall victim to fraudsters who use personal relationships and networks to build trust. Artamonov solicited money for his investment fund through the HBS alumni network, targeting individuals who did not have a close personal relationship with him.
The scheme was uncovered when an investor tragically took his own life after discovering he had lost $100,000 in Artamonov’s alleged scheme. Artamonov is said to have used new investments to pay existing investors while using their funds for personal expenses such as vacations, shopping, and dining.
Artamonov’s LinkedIn profile indicates he is an investment professional at Greenlight Capital and a portfolio manager at Coastal Investment Management, a firm he founded in 2009. The focus of Coastal Investment Management is a long/short equity strategy that includes special situations. Prior to attending Harvard Business School, Artamonov worked as a financial analyst at Merrill Lynch and graduated from The Wharton School in 1999.
The case serves as a cautionary tale about the importance of conducting thorough due diligence before investing and the potential dangers of trusting individuals solely based on their educational background or professional affiliations.
