- Qin, CEO of Virgil Sigma and VQR Funds, stole almost $90 million from unsuspecting investors.
- He was charged to the Federal Court, where he pled guilty.
- Qin looks forward to a sentence of up to 20 years.
SteFan Qin wad charged to the federal court with one count of securities fraud on Feb 4. Federal prosecutors said accused him of luring unsuspecting investors with a claim that he had a trading strategy that maximizes the market’s inefficiencies to make huge profits.
Investors Lost Millions To Qin’s Trickery
Qin duped investors from his Fund, Virgil Sigma, after he allegedly stole from them to pay for his penthouse apartment and other expenses. Qin, tried to rob from his VQR investors as well, another prosecutor said.
The 24-year-old on Feb 4 admitted the charge, confessing that he wanted to take from investors fund in VQR to pay back the amount he took from his first firm, Virgil. A Manhattan Attorney referred to Qin’s action as “brazen bravery.”
The founder of the hedge funds is to be sentenced soon and could be put away for up to 20 years. However, Qin’s lawyers, mentioned that he is sober and ready to do whatever is needful, and that he takes full blame for his actions.
Qin Squandered Investor’s Money On His Expenses
Audrey Strauss, a U.S Attorney, said that Qin duped the investors “of almost $90 million” from his company. This act had been going on for years, while Qin made false claims to lure investors to his company and defraud them of their money.
At some point, Qin allegedly used the funds he stole from Virgil Sigma to invest in crypto assets in ways different from the promised trading strategy. At another instance, he invested some of investor’s money in a real estate transaction. Qin spent the money on several other personal expenses.
Summarily, Qin used the investors’ money to pay for his thriftful way of living, said the HSI team in charge of Qin’s case. Qin misled investors to believe that his company was a profitable one, while luring them with his trickery. The HIS Task Force warned those who would want to defraud honest citizens to be reminded that they will be uncovered if they tried.
Qin often prepared false spreadsheets revealing made-up numbers about the investors’ holdings. He often prepared promotional materials claiming that his funds made huge and remarkable returns. Qin released reports that did not truly reveal the outcome of trades.
In a bid to cover up his tracks when he couldn’t meet up with demand from his investors at Virgil Sigma, Qin also tried to rob VQR Investors of their money. He then swayed Virgil Sigma’s investors to commit their funds to a different investment in his other firm, VQR. After some time, he deceived investors that he had made the transfer but was delayed by the bank. However, the firm’s bank refuted those claims when they couldn’t find traces of the transaction. If only they knew he had wasted investor’s fund.