by Michael Velazquez, CFP®, CPA, PFS
That’s what the SEC (Securities & Exchange Commission) alleges a former New York traffic cop did. You can’t make these things up. The man’s name is Mark Malik and he is being held until he can post a $1 Million bond. His bizarre behavior is reminiscent of the movie, “The Wolf of Wall Street”. In fact, he worked for a company called “Wolf Hedge”. I suppose we should not be surprised if they make a movie out of this too.
Mr. Malik changed careers and became a rising star in the investment world, as Bloomberg reported that his Seven Sages fund had a 92.73% return on investment for 2012. Another ratings agency, BarclayHedge awarded him a “gold star” for his stellar performance. He claimed he had $100 Million in assets under management but actually only raised $840,000 and never held more than about $90K in his trading account.
It was all a scam. He is believed to have used the money to live lavishly, taking classes at Harvard and buying jewelry. When investors asked for their money back, he pulled some innovative ploys to keep the money. In one such stunt, he pretended he had died! Can you imagine the dialogue: “I’m sorry, you can’t have your money back, I died”! On another occasion he sought to intimidate an investor by comparing himself to a werewolf!