U. S. Attorney Preet Bharara announced that Igor Levin and Yevgeny Shvartsshteyn were each sentenced in Manhattan federal court to 87 months in prison for their leadership roles in defrauding investors out of more than $7 million.  The investors placed their money into purported hedge fund, A.R. Capital Global Fund, L.P., from 2005 through September 2006.  , which supposedl thought they were investing in a viable hedge fund, From 2005 through September 2006, Levin and Shvartsshteyn were among the individuals who controlled and operated A.R. Capital, the fund's general partner.

They attracted the investors with false and fraudulent representations that included such claims as: (i) the ARC Global Fund was a hedge fund that invested primarily in the equity of international real estate companies; and, (ii) the ARC Global Fund invested in real estate, oil, gas, and other commodities.   In reality, there were no such investments. The $7 million or so in investor funds were wired to various bank accounts in Eastern Europe. 

The defendants each pled guilty to one count of conspiring to commit mail and wire fraud for their participation in the investment scheme.  Judge STEIN also entered forfeiture orders in the amount of $7 million against LEVIN and SHVARTSSHTEYN, which constituted proceeds from their crime.  Mr. Bharara credited the FBI, the NYC Police Dept, and the SEC for their assistance.   [FBI Press Release, 3/28]