A Leesburg man pleaded guilty in Federal District Court on Friday to wire fraud in connection with his misuse of $9 million in clients’ funds.
According to the statement of facts filed with the plea agreement, Tamer Moumen, 39, defrauded more than 50 clients between 2012 and 2017. Moumen falsely told investors he consistently beat the S&P500 and was overseeing tens of millions of dollars through his company, Crescent Ridge Capital Partners. He encouraged clients, including many who were nearing retirement age, to liquidate their other investments and retirement accounts, and invest with him.
However, Moumen had no experience managing a hedge fund, had a history of losing money in the securities market, and was relying on investor money to support his lifestyle and pay personal expenses. For example, Moumen used investor money to help finance the purchase of his $1 million Leesburg-area home and a new Tesla, and to repay old investors. In nearly all instances, Moumen lost or spent his clients’ money within a matter of weeks or months of their original investment, but would conceal those facts by providing statements that showed the investment as steadily growing.
Beginning in 2015, Moumen was involved with two fundraising efforts that solicited donations to benefit refugees, including a GoFundMe campaign and the Northern Virginia Refugee Fund. He had sole control of the donated funds, some of which he transferred into accounts in his name, where the money was commingled with investor funds. Moumen also used money in these accounts to pay personal expenses, according to the filings.
Moumen faces a maximum penalty of 20 years in prison. Sentencing is scheduled for July 28.