Another Wall Street name is caught up in the nets after the former partner of N.Y. boutique bank PJT was accused of stealing more than a quarter of a hundred million dollars from investors.
Andrew Caspersen, a former partner at a unit of boutique investment bank PJT Partners Inc., has been arrested over allegations of fraud as reported by Reuters. Caspersen was named in the complaint filed by federal prosecutors in Manhattan who charged him with securities and wire fraud.
Prosecutors said the 39-year-old executive has sought $24.6 million from a charitable foundation affiliated with New York saying he would invest in a secured loan to a private equity fund. However, it backfired after he used the money for personal options trading, losing $14.5 million in the process.
The Australian reported that Caspersen has made a fictitious financier, set up a bogus internet domain names and fake email address which are all part of his bizarre scheme to steal $25 million. Caspersen has been arrested on Sunday at New York's La Guardia Airport and appeared immediately to Manhattan federal court. The judge approved his bail with $5 million and as part of the package paid, he was sent to undergo a psychological evaluation. The lawyer of the defendant didn't make a comment.
PJT dismissed Caspersen on Monday as written by Yahoo. Moreover, the company suffered the consequences of his actions as the investment bank PJT Partners Inc.'s shares fell to as much as 24% on Monday after the arrest. PJT was alerted with the situation of fraud on March 14 by a still unnamed third party and after which, the company went on to hire an outside counsel. Upon its validation, they alerted the US Attorney's Office in Manhattan.
Caspersen is described by his own lawyer as 'a daily alcohol user' and will seek mental health treatment as ordered by US Magistrate Judge James Francis. Caspersen, son of Finn M.W. Caspersen, is known to be a Princeton graduate who also went to Harvard Law School.
