An immigrant from Belarus was arrested in New York: he is accused of fraud with securities worth $ 8,5 million

Sergei Polevikov, an immigrant from Belarus living in New York, is accused of participating in a multimillion-dollar fraudulent scheme. He embezzled his employer's unfinished business information and proactively embezzled profits. In the course of fraudulent transactions with securities, he managed to get $ 8,5 million. US Department of Justice website.

Polevikov, 48, is accused of securities fraud, electronic fraud and investment company fraud in connection with his scheme of misappropriating confidential information about unfinished transactions by his employer, an investment advisor, on behalf of clients of his investment company.

Polevikov was arrested on Wednesday 22 September.

The indictment alleges that from 2014 to October 2019, Polevikov worked as an analyst at an asset management firm headquartered in Manhattan. Judging by his LinkedIn page during this period he served as Vice President at OppenheimerFunds. There is also evidence that in 1996 he graduated from the university in Minsk, in the same year he began his studies at Southern Methodist University in Texas, that is, it can be assumed that it was at this time that he moved to America.

As part of his work, according to the indictment, Polevikov had access to information about potential transactions with securities, which were considered by clients of his firm, including several investment companies.

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According to the indictment, Polevikov "was involved in a proactive scheme of misappropriation of confidential, material, non-public information about securities trading orders on behalf of his clients in order to engage in short-term personal securities trading in a brokerage account opened in the name of his wife."

Strauss explained that Polevikov's scheme was “designed to generate profits through transactions that exploit relatively small fluctuations in the company's share price.

In total, Polevikov embezzled more than $ 8,5 million under a fraudulent scheme.

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Prosecutors said in an attempt to hide his scheme, Polevikov lied to his employer about trading accounts and securities transactions that violated the Investment Companies Law.

“By using inside information to exploit small fluctuations in the price of his employer's stock, Polevikov has reaped significant financial benefits from his deals,” said FBI Assistant Director Michael Driscoll. "These schemes are, unfortunately, all too common, and if you misappropriate confidential information for your personal gain, you should expect the FBI to find you."

“Sergei Polevikov violated not only the conditions of his work, but also the law,” said Strauss. “Although he tried to hide it, his fraudulent scheme was exposed. Polevikov faced serious federal charges. "

If convicted, he faces up to 20 years in prison.