Elm Tree Investment Executives Charged by U.S. in Scam

  • Duo accused of running Ponzi scheme using supposed investments
  • Pair allegedly spent funds on expensive sports cars, jewelry

Elm Tree Investment Advisors LLC founder Fred Elm and the firm’s chief operating officer were charged in Manhattan with running a $17 million fraud scheme.

The executives of Florida-based Elm Tree are accused of falsely claiming they had access to pre-initial public offerings because of their business relationships with “leading” venture capitalist firms, according to a complaint filed in federal court.