A stock-lending scheme allegedly duped an investor out of hundreds of millions of dollars worth of corporate shares, U.S. authorities are alleging.
According to an indictment that was unsealed in New York, Vladimir Sklarov, orchestrated a scheme that defrauded an investor, who originally sought a loan of US$115 million, and agreed to pledge company stock as collateral.
The indictment alleged that between 2021 and 2024, Sklarov operated a firm, Astor Asset Group, which held itself out as a provider of loans backed by equities, and that claimed to be affiliated with the Astor family in New York. However, U.S. authorities allege that the company was actually a front for fraud.
Starting in July 2021, the firm agreed to make a loan to an investor, who agreed to supply stock as collateral, which was not to be sold unless they defaulted on loan.
However, the indictment alleged that soon after the stock was transferred, Sklarov sold the stock and used the proceeds to fund the loan, and allegedly misappropriated much of the rest.
“Sklarov used false prestige to gain control of hundreds of millions of dollars in stock and then liquidated those shares for his own benefit,” said Jay Clayton, U.S. attorney for the Southern District of New York, in a statement Tuesday.
The allegations have not been proven in court.
Sklarov was charged with one count of wire fraud, conspiracy to commit wire fraud and conspiracy to commit money laundering. He was arrested in Chicago earlier this week.