UNC employee accused of running $9.3 million Ponzi scheme out of Durham
A University of North Carolina employee has been accused of operating a $9.3 million Ponzi scheme over the past year, promising investors double-digit monthly returns at little to no risk.
According to a civil complaint filed in federal court by the United States Securities and Exchange Commission, 27-year-old Nayeem Choudhury of Durham began soliciting investments around July 2022 and eventually took money from around 80 investors across multiple states. Despite touting his “superlative trading record,” Choudhury actually lost at least $4.8 million in risky options trades through his company, Dream Venture Capital Group, the SEC alleges.
The federal government says Choudhury used investors’ money to repay other investors and cover personal expenses, including the purchase of an $85,000 Mercedes. The complaint says investors continued to give Choudhury money as recently as June 5 and that he has only returned around $3.5 million.
Choudhury works as a clinical research project manager at UNC-Chapel Hill. According to his LinkedIn bio, he has been with the university since September 2020. The SEC complaint says his UNC salary is around $73,700.
The News & Observer has reached out to Choudhury by phone but has yet to receive a response.
The website for Dream Venture Capital Group is now private. Screenshots of the website, captured in January from the internet archival platform Wayback Machine, show Choudhury smiling in a suit with a message that reads, in part, “Dream Venture Capital Group is an actively traded Fund with a proven track record of consistent results.”
But according to the SEC allegations, between August 2022 and June 2023, he lost at least $100,000 — and sometimes more than $1 million — in nine of those 11 months. Yet during this time, Choudhury is accused of misleading investors by trumpeting online supposedly high “Win” rates north of 80%.
When testifying during the investigation, Choudhury repeatedly exercised his Fifth Amendment rights against self-incrimination, the SEC noted.
A Ponzi scheme is a type of fraud in which someone uses the funds from new investors to repay earlier investors. The federal government accuses Choudhury of violating the Securities Act of 1933 and Securities Exchange Act of 1934.
The Securities and Exchange Commission is responsible for civil enforcement of securities violations. It is asking the court to issue an injunction that would force Choudhury and Dream Venture Group to stop taking money from investors and keep them from spending money they have already accepted. The SEC alleges that Choudhury and Dream Venture Group still have between $400,000 and $500,000 of the investors’ money.
The U.S. Justice Department is responsible for pursuing criminal charges in securities fraud cases. The SEC filing makes no reference to a Justice Department investigation. The News & Observer has asked the U.S. Attorney’s Office if criminal charges will be filed against Choudhury but has not yet received a response.
Acccording to the SEC complaint, Choudhury acknowledged his actions during a June 20 phone conversation with an investor who had given him $500,000. When the investor asked Choudhury why he proclaimed his investing strategy was working when it wasn’t, Choudhury responded, “I think it was greed.”
This story was originally published July 14, 2023 at 11:58 AM.
