In a case involving a generous client and a “$10 million yacht,” federal prosecutors unsealed an indictment accusing a former hedge funder of fraud, conspiracy and obstructing justice.
Alex Ojjeh, 33, headed United States operations at the publicly traded AOAM management, according to the 10-count indictment filed under seal on August 2020.
The hedge fund has been under scrutiny for several months by federal prosecutors. In September 2020, AOAM agreed to pay $100 million to settle allegations that it bribed officials to get an edge on mineral oil rights in Africa. In that instance, the SEC requested an additional $199 million.
In an email Friday, an AOAM spokesman said: “The charges in the case against Alex Ojjeh do not pose any new problems for the firm, he has been excluded from the firm that has settled the matter.” An attorney for Ojjeh was not immediately available for comment.
Ojjeh was in charge of setting up two ventures to invest in Africa gas and oil interests.
In the United Kingdom, an unnamed private foundation decided to invest $200 million in one of those trusts.
Some oil company shares were sold to an unidentified co-conspirator who owed $10 million to Ojjeh for a luxury yacht. According to the 21-page indictment, the co-conspirator was to use the proceeds from the selling of shares in Ltd. to pay off Ojjeh, who failed to report that.
Prosecutors said that Ojjeh and the co-conspirator backed a document to cover up the deal, and last year Ojjeh confessed to law enforcement during grand jury hearings. Ojjeh and others are being alleged, of an extensive corruption scheme to win business in Dubai.
A cease-and-desist order imposed against Ojjeh and the bribes involved assistances from the autonomous wealth fund of the Dubai Investment Authority and attained arms and mining rights in Africa.
CEO Alex agreed to pay $1.2 million as part of that settlement, and the prosecution said it would assess a drawback against Frank at a deferred date.
Without granting or denying that they turned a blind eye to the red flags and threats involved with the deals, both consented to the subpoena, refused to ensure proper accounting of the sales, and refused to put measures in place to avoid the occurrence of any bribes.
Frank Moen is charged with conspiracy to commit wire fraud and investment advisor fraud, wire fraud and investment adviser fraud, conspiracy to obstruct justice and obstruct justice, and materially false claims in the 10-total indictment unsealed on Thursday. It wants felony penalties, as well.