Harvard MBA Used Alumni Network To Fuel $4M Fraud, Feds Say

Vladimir Artamonov, a 2013 graduate of Harvard Business School, has been indicted in federal court for allegedly defrauding classmates and other investors out of more than $4 million, according to reports in multiple news outlets.

Artamonov was arrested earlier this week in Elkridge, Maryland, and charged with securities fraud, wire fraud, and investment adviser fraud in the U.S. District Court for the Southern District of New York. Federal prosecutors say he promised “astronomical” returns based on a secretive investment strategy he called Project Information Arbitrage, which he claimed could predict Berkshire Hathaway’s next big moves by analyzing insurance filings.

Instead, according to the indictment, he used investor funds to make high-risk short-term options trades, covered up losses with misleading reports, and paid early investors with money from new ones — the classic mechanics of a Ponzi scheme. Prosecutors say less than $400,000 of the $4 million raised has been returned.

‘BETRAYED INVESTORS, INCLUDING FRIENDS AND FORMER CLASSMATES’

Artamonov now faces decades in prison if convicted. He was released on $300,000 bail on the condition that he have no contact with victims or witnesses.

“Vladimir Artamonov betrayed investors, including friends and former Ivy League classmates, by promising a low-risk, high-return investment strategy, when in fact he gambled away investor money,” U.S. Attorney Damian Williams said in a statement quoted by Reuters.

Prosecutors say Artamonov told one investor, “It will be your best investment. The insight is air tight” — a line cited in the criminal complaint and reported by AP.

The case is the latest twist in a financial scandal that first surfaced in February 2024, when New York Attorney General Letitia James filed a civil suit against Artamonov and his fund. That complaint alleged that at least 29 investors — most of them fellow Harvard Business School alumni — were defrauded out of $2.9 million, and that one early investor who lost $100,000 subsequently died by suicide.

CIVIL CASE FIRST EXPOSED ALUMNI NETWORK FRAUD

In the civil complaint, AG James alleged that Artamonov used his HBS pedigree to build credibility and lure investors from within his personal and professional circles. The pitch was unusually specific: by analyzing insurance filings from Berkshire Hathaway subsidiaries, he claimed he could detect the company’s trading patterns and front-run its market moves.

“Vladimir Artamonov used his alumnus status from Harvard Business School to prey on his classmates and others while seeming legitimate and dependable,” James said in a press release dated February 29, 2024. “Even sophisticated investors can be conned by fraudsters, especially when personal relationships and networks are used to build a false sense of trust.”

As Poets&Quants reported at the time, Artamonov marketed his strategy as a “low-risk hedge fund with a big data edge,” often boasting of 500% to 1,000% returns. He called the venture Project Information Arbitrage, though it was sometimes referred to simply as the Artamonov Fund. A New York state court later issued an injunction freezing his bank and brokerage accounts and ordering him to cease solicitations.

ARTAMONOV FACES DECADES IN PRISON

The federal indictment escalates the case from civil enforcement to criminal prosecution — and raises the stakes considerably. According to the Department of Justice, Artamonov raised more than $4 million between September 2021 and February 2024, but failed to disclose losses, misrepresented account balances, and misused funds for personal expenses including travel and dining.

Court documents say he created fake spreadsheets and doctored screenshots to reassure concerned investors. He used proceeds from new investors to pay returns to earlier ones — a hallmark of Ponzi schemes — while personally profiting from the illusion of success.

Now facing multiple felony counts, Artamonov could be sentenced to up to 20 years per count if convicted. The case is being prosecuted in the Southern District of New York, under the docket U.S. v. Artamonov.

A CAUTIONARY TALE FOR ELITE NETWORKS

The story has resonated in business school circles not just because of the financial losses, but because of how trust was weaponized. Many of Artamonov’s victims were personal contacts — classmates, roommates, and colleagues — who said yes to the investment because of a shared Harvard connection.

In her 2024 announcement, AG James warned that affinity fraud — fraud that exploits shared identity or credentials — remains a growing threat.

“This case is a reminder that even trusted networks are not immune to deceit,” she said.

The case is US v. Artamonov, 25-cr-00420, US District Court, Southern District of New York (Manhattan).

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