Former Hedge Fund Employee and Law School Graduate Convicted in Fraud, Aggravated Identity Theft, and Money Laundering Scheme
On Friday, July 14, 2017, a federal jury in Miami convicted Gerti Muho, 33, of Ridgewood, New York, for devising and executing a three-year fraud scheme that targeted various banks, lenders, and companies, including his former New York-based hedge fund employer and numerous real person victims.
Benjamin Greenberg, Acting U.S. Attorney for the Southern District of Florida; Antonio J. Gomez, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division; Philip Bartlett, Special Agent in Charge, U.S. Postal Inspection Service, New York Division; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and John Brooks, Chief, Sunrise Police Department, made the announcement.
Following a three-week trial before U.S. District Judge Beth Bloom, a jury convicted Muho of 40 counts of bank and wire fraud, aggravated identity theft, and money laundering. Sentencing is scheduled before Judge Bloom on September 26, 2017 at 2:00 p.m.
According to the court record, Muho, a 2012 University of California Berkeley, School of Law graduate, was fired during May 2013 from his position at an international hedge fund company in New York. Thereafter, Muho absconded with a copy of all data and information on the company’s computer server, began creating numerous Delaware-based shell companies, and quickly attempted to syphon millions of dollars from various hedge fund bank accounts.
The evidence at trial showed that, during August 2013, after submitting a series of U.S. Securities and Exchange Commission and other corporate documents and materials, Muho falsely and fraudulently induced a bank in Monaco to wire him over $2 million. Thereafter, Muho fled to South Florida and quickly utilized the funds for his own personal use and benefit, including to gamble, shop, and purchase a new 2013 Maserati vehicle and an ocean-view downtown Miami condo. Muho also created and utilized various aliases and obtained driver’s licenses and identification cards from various states in order escape a civil judgment emanating from the Southern District of New York and further his fraud scheme. During 2014, Muho fraudulently obtained a $500,000 business loan, utilizing his Miami condo as collateral, which he promptly used to gamble, shop, and travel. During early 2015, Muho traded in his 2013 Maserati and also fraudulently obtained a $30,000 vehicle loan in order to purchase a new 2015 Jaguar vehicle. Utilizing the personal identifying and financial information of various employees, former interns, and others associated with his former employer, Muho unlawfully obtained and created additional fake identification cards and drivers licenses. He also fraudulently opened various bank accounts in Miami-Dade and Broward counties and created and cashed over $70,000 in false and fraudulent checks. Muho also falsely and fraudulently applied for another $250,000 in credit cards and vehicle, business, and student loans with numerous banks and other lenders. During 2016, facing eviction from his Miami condo, Muho fled South Florida and was ultimately arrested in Ridgewood, New York.
Mr. Greenberg commends the investigative efforts of the USPIS, FBI, and Sunrise Police Department in this matter. Mr. Greenberg also thanked the U.S. Attorney’s Office for the Eastern District of New York for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Sean T. McLaughlin and Matthew Langley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.