The resulting conflict necessitated a small population of lawyers, spanning courtrooms in three countries. At AM, federal agents arrested Amanat at the .75 million home he was renting in Short Hills, N. The following day, a federal judge unsealed a grand jury indictment.
It charged Amanat with wire fraud, aiding and abetting investment adviser fraud, and conspiracy to commit securities fraud. attorney Preet Bharara charged that Amanat cheated investors “of millions of dollars through years of lies and deceit.”Amanat’s arrest triggered considerable schadenfreude.
According to the indictment, Amanat helped an investment firm hide losses, and helped inflate the value of shares of Kit Digital, a bankrupt video technology company. “It is very satisfying to see that Omar Amanat’s chequered past is catching up with him, although I am surprised it has taken this long,” Doronin said in a statement to .
To facilitate the scheme," the indictment continues, "Maiden, with the knowledge and approval of Amanat, generated fictitious client account statements that failed to disclose the Enable losses.
In addition, Amanat wired hundreds of thousands of dollars to a Maiden Capital bank account to support Maiden Capital, including to allow Maiden to repay investors whose redemption requests could not be forestalled and thus to continue to keep secret from Maiden Capital investors the Enable losses.”On July 1, Maiden pleaded guilty to conspiracy to commit securities and wire fraud; the former CFO for Kit Digital, whose stock Amanat allegedly helped inflate, also pleaded guilty.
Though much of Barna's account boils down to his word against Amanat’s, one person—the former property manager for the house in question—offers a view that is consistent with Barna's.
Richard Black says he regularly had to fight to get paid by Amanat and eventually quit.
He ended up making an agreement with the tenants to use the backyard only for the duration of the charity event.