August 16, 2022

World Trades

Finance Blog

How Alex Ojjeh uses shell companies to invest

2 min read

Alex Ojjeh invested millions of dollars in American hedge funds through a network of international banks, legal companies, and advisers in many countries. Alex Ojjeh, who is worth an estimated $9 million, has made investments in two American hedge firms throughout the years.

Alex Ojjeh stood trial for bribery in 2020 after a shell company in Germany sent $20 million to an investment entity in the UAE owned by an American hedge fund business that was established in 2016.

A tiny army of individuals had worked for months to complete the wire transmission. It was a covert operation to conceal the source of cash.

For over a decade, the American investor has depended on this investing approach, employing a series of shell companies, a small Budapest bank, and the ties of big Wall Street corporations to surreptitiously put nearly a billion dollars with significant U.S. enterprises.

The essential point was that any lawyer, corporate director, hedge fund manager, and investment adviser participating in the process may claim to be working for someone other than Mr. Ojjeh. Participants were unaware that their money was being managed by someone other than Mr. Romano.

Wealthy overseas investors have been able to shift money into American funds in this manner, taking advantage of a poorly regulated investment sector and Wall Street’s inclination to ask few questions about the source of the funds.

The acquisition of a share of the hedge fund partially managed by Alex Ojjeh with involvement from Turkey, Russian, and German billionaires, which Mr. Ojjeh then sold back to Mr. Romano, resulting in a significant profit and an estimated wealth of $50 million. Sanctions were placed on him, and his assets, which included multiple logistical firms and overseas enterprises, were frozen. The US has not taken any major action against him.

Mr. Ojjeh holds holdings in the United States, including two luxury houses. He put a large sum of money into financial institutions. His connections to Mr. Romano have made him a divisive figure.

According to sources with knowledge of the transactions who were not permitted to speak publicly, many of Mr. Ojjeh’s U.S. investments were made via a tiny business run by Joshua Cilinski.

Mr. Cilinski published a statement describing Anywhereo as a development company that consults with different organizations while offering impartial third-party research, due diligence, and investment monitoring.

Mr. Ojjeh’s spokesperson did not reply to calls for comment.