Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Darden Restaurants Surpasses Earnings Forecasts as Olive Garden’s Parent Company Projects 2026 Growth

    June 25, 2025

    Starbucks Enters Next Phase of Turnaround by Focusing on Employee Engagement

    June 18, 2025

    Walmart Launches New Credit Card Through Its Own Fintech After Ending Capital One Partnership

    June 11, 2025
    Facebook X (Twitter) Instagram
    Friday, June 27
    X (Twitter) Instagram
    NinepenniesNinepennies
    • Home
    • Featured

      The Highest-Paying Jobs in America—And It’s Not in Finance!

      March 27, 2025

      7 Must-Buy Costco Sale Items Before They’re Gone This February 

      February 10, 2025

      Steel Stocks on the Rise: 3 Winners After Tariff Announcements

      February 4, 2025

      The Best Oil Stocks to Invest $200 in Right Now

      January 28, 2025

      Top 10 Best Jobs of the Year: High Demand, Six-Figure Salaries, and Bright Futures

      January 23, 2025
    • Entrepreneur News

      Darden Restaurants Surpasses Earnings Forecasts as Olive Garden’s Parent Company Projects 2026 Growth

      June 25, 2025

      Starbucks Enters Next Phase of Turnaround by Focusing on Employee Engagement

      June 18, 2025

      Walmart Launches New Credit Card Through Its Own Fintech After Ending Capital One Partnership

      June 11, 2025

      Walgreens Store Closures: Full List of Locations Shutting Down This Month

      June 4, 2025

      Walmart Addresses Trump’s Demand to Cover Tariff Costs

      May 25, 2025
    • Financial Wellness

      Smart and Risky Spots To Store Your Cash, Coins, Crypto, and More

      April 24, 2025

      The Minimum Salary Needed to Be in the Upper-Middle Class in 2025

      March 21, 2025

      Should You Buy, Sell, or Hold Amazon in 2025?

      March 7, 2025

      From Hawaii to West Virginia: The Shocking 77-Year Gap in Retirement Savings Longevity

      February 24, 2025

      Are the 3 Highest-Paying Dividend Stocks in the Dow Jones Worth Buying?

      February 17, 2025
    • Popular Now

      European Markets Climb as Trump Moves to Cut Tariffs on Auto Parts

      May 1, 2025

      Robinhood Expands Trading to Include Bitcoin, Oil, and Gold Futures 

      January 30, 2025

      Powerball Winning Numbers for January 18: Oregon Player Takes Home $328.5 Million Jackpot

      January 21, 2025

      Morgan Stanley Surpasses Estimates With Robust Equities and Fixed Income Trading Revenue

      January 20, 2025

      10-Year Treasury Yield Edges Lower Amid Anticipation of Economic Data, Fed Remarks

      November 21, 2024
    • Wealth

      America’s 10 Wealthiest Self-Made Women, According to Forbes— #1 May Surprise You

      February 5, 2025

      8 Wealthiest Royals in History

      February 4, 2025

      One Powerful ETF That Grew $10,000 to $55,000 in a Decade: Is It Worth Buying in 2025?

      January 28, 2025

      Coinbase CEO Predicts Bitcoin Could Hit Multi-Million Dollar Value

      January 24, 2025

      Dogecoin Surged After Elon Musk’s Appointment: What’s Happening With This Popular Meme Coin?

      November 18, 2024
    NinepenniesNinepennies
    Home » New York Attorney General Blows Whistle on a Ponzi Scheme that Has Defrauded Harvard Alumni to the Tune of $2.9 Million 
    Editor's Picks

    New York Attorney General Blows Whistle on a Ponzi Scheme that Has Defrauded Harvard Alumni to the Tune of $2.9 Million 

    DunniBy DunniMarch 25, 20246 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    Letitia, during her tenure as a New York City council member
    Source: Freelancers Union/Flickr
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Until Attorney General Letitia James obtained a court order restraining the activities of an investment scheme, a Harvard Business School (HBS) graduate has been parading his investment proposals as legitimate. 

    Letitia, during her tenure as a New York City council member
    Source: Freelancers Union/Flickr

    However, it has been discovered that the mastermind merely ran a Ponzi scheme. A handful of HBS alums have entrusted their savings to him. One committed suicide after learning that he lost the $100,000 he invested in the scheme.

    An Investment that Offers 900% Returns  

    According to James’ office, the scheme has successfully obtained a total of $2.9 million from alumni. The investment bait was a claim that the funds would earn returns of between 500% to 1000%.    

    Facade of a Hall at Harvard
    Source: Louis Ricci/X

    In his pitch, Vladimir Artamonov, the scheme’s prime mover, claimed to know Berkshire Hathaway’s intended investment moves. 

    No More Profligate Spending  

    However, the attorney general has successfully obtained a court order restraining Artamonov’s fraudulent financial activities. The Supreme Court of New York, in Manhattan, has ordered freezing all bank accounts affiliated with him. 

    Brown wooden trunk box with brass-colored padlock and chain
    Source: PickPik

    Likewise, Artamonov will be required to appear at the State Supreme Court on March 28 to present his defense on the allegations leveled against him. 

    HBS as a Rallying Ground 

    Artamonov won the trust of many of his victims thanks to their common affiliation with Harvard Business School. These investors were not only alumni of the school but also some of his associates. 

    Kagame taking a cohort at HBS
    Source: Paul Kagame/Flickr

    So far, the office of the New York attorney general has confirmed 29 scheme victims. As stated earlier, the recurrent pattern is that most of the investors are HBS alumni.

    Investment or Misinformation?  

    The attorney general’s investigations revealed that Artamonov invested the money he polled from his pitches. However, the short-term options he bought with the cash did not perform well, and he lost millions of dollars in investors’ money.  

    A man mopping over his loss
    Source: Edwin.Images/Wikimedia Commons

     This was not the chiefest of Artomonov’s crimes, but his refusal to declare the loss is. 

    The Making of a Ponzi Scheme  

    After his massive loss, Artamonov proceeded to lure more investors into the scheme. His next step is astounding, as it moves to cover up the unprofitability of his investment scheme.  

    The different layers of a pyramid scheme
    Source: Ethereum.network/X

    With the fresh cash injection from new investors, Artamonov proceeds to pay initial investors, building a sturdy-looking financial facade.  

    You Only Live Once!  

    The attorney general’s office also unearthed evidence revealing Artamonov’s debauchery, using investors’ money.

    Stunning vacation destination
    Source: Nikolas Koenig/Flickr

    The records showed that he went on dining and shopping sprees and funded his many vacations and other personal expenses, all with money intended for investment and without the investors’ permission. Artamonov was quite audacious in using resources that did not belong to him.

    Called Out By the Dead    

    Artamonov’s scheme would probably have continued cruising beneath the waves, with no disturbance, but for the reported case of a suicide. 

    Suicide through pills overdose
    Source: HASTYWORDS/Needpix

    With an undisclosed identity, the deceased party invested $100,000 with Artamonov in October 2022, making him one of the scheme’s initial investors. Unfortunately, Artamonov lost all the money to short-options trading.

    Watering a Dead Seed 

    When the deceased asked Artamonov about the status of his investment, he claimed he had yet to invest the money and even tried to encourage the former to part with another $50,000. 

    A gravestone commemorating a suicidal demise
    Source: Harrygouvas/Wikimedia Commons

    The investor would later learn of the monetary loss, probably through constant urging, and proceeded to take his own life. Still, Artamonov was not ready to step off the gas.

    Sustaining the Fraudulent Tempo  

    Even after the suicide, Artamonov continued pitching to new investors, shrouding the reality of his financial activities in a shadow of pretenses. He was assuring new investors of the scheme’s profitability while, in reality, he was only robbing Peter to pay Paul.

    A man monitoring the trend of cryptocurrency
    Source: Bybit/Wikimedia Commons

    Artamonov would take money from fresh investors to reassure suspicious investors and pay the doubtful ones. 

    Exploiting Sentiment as a Tool of Manipulation 

    The attorney general of New York, Letitia James, made an official statement on her website explaining the reasons for Artamonov’s scheme’s short-lived success. 

    Fraud file with gavel
    Source: Ronit K/Medium

    She said, “Even sophisticated investors can be conned by fraudsters, especially when personal relationships and networks are used to build a false sense of trust.” 

    How Not to Invest  

    Artamonov successfully lowered the defenses of his friends, colleagues, associates, and fellow alumni based on sentiments. He simply waved his status as an HBS alumni in their faces, and they let their guard down.  

    A 2022 cohort of HBS taking a group picture with Kagame
    Source: Paul Kagame/Flickr

    Despite trusting him and believing in the values HBS has impacted on him, many surrendered their life savings. However, they now regret ever dealing with Artamonov. 

    What Have You Got to Say?  

    So far, Artamonov has not been responding to communications from news outlets requesting his side of the story. Of course, his lawyers must have advised him against committing such a gaff, particularly now that the case is a subject of litigation. 

    Aerial view of HBS campus
    Source: Juliette Melton/Flickr

    However, the head of communications at HBS responded in an email that they were just learning about the development and would not comment any further.  

    The Qualifications of an Alleged Fraudster  

    In the official statement by the attorney general’s office, James explained that Artamonov studied at HBS and graduated in 2003 with a Master’s in Business Administration. 

    Morgan Stanley, New York City
    Source: Colby Hamilton/New York Law Journal

    After graduation, Artamonov moved to New York and obtained a license to operate as a securities professional. However, he went full-time into what he called ‘the Artamonov Fund’ in September 2021.

    Through the Grapevine    

    James’ office discovered that Artamonov had no personal relationship with most of his HBS investors. Instead, they were merely acquaintances whom he narrowed down through the HBS alumni network.

    Attorney General Letitia James addressing the press
    Source: James Tate/X

    While the attorney general’s office has identified about 29 of Artomonov’s victims, they encourage any other victim to come forward with information that could help prosecute the case.

    attorney fraud investments Ponzi Scheme
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous Article6 Financial Errors Rich People Avoid To Sustain Their Wealth
    Next Article Experts Advise Women on How To Achieve ‘Financial Peace’

    Related Posts

    Editor's Picks

    The Highest-Paying Jobs in America—And It’s Not in Finance!

    March 27, 2025
    Financial Wellness

    10 Popular Investments That Might Just Be a Waste of Money

    February 7, 2025
    Editor's Picks

    6 Financial Adjustments Upper-Class Retirees May Face During Trump’s First Month as President 

    January 30, 2025
    Add A Comment

    Comments are closed.

    Top Posts

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Stay In Touch
    • Twitter
    • Instagram
    You Might Like

    Subscribe to Updates

    Get the latest tech news from FooBar about tech, design and biz.

    Most Popular

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Our Picks

    Darden Restaurants Surpasses Earnings Forecasts as Olive Garden’s Parent Company Projects 2026 Growth

    June 25, 2025

    Starbucks Enters Next Phase of Turnaround by Focusing on Employee Engagement

    June 18, 2025

    Walmart Launches New Credit Card Through Its Own Fintech After Ending Capital One Partnership

    June 11, 2025
    X (Twitter) Instagram
    • Home
    • Editor’s Picks
    • About Us
    • Get In Touch
    • Privacy Policy
    • Terms of Use
    • Editorial Standards
    © 2025 Ninepennies.

    Type above and press Enter to search. Press Esc to cancel.