Key Takeaways
- • Vuk Vokovic, 38-year-old founder of Oraclum Capital, faces two federal felony charges—securities fraud and wire fraud—each carrying a maximum 20-year prison sentence for allegedly fabricating investor returns.
- • Oraclum, a New York-based hedge fund launched in 2022, allegedly reported fictitious high rates of return to the Orca Bason Fund's investors to attract and retain capital through systematic misrepresentation.
- • U.S. Attorney for the Southern District of New York Jamie McDonald stated the scheme centered on "lulling" investors into keeping money invested by reporting gains that "were not real."
- • The fund markets itself as using "wisdom-of-crowds research and proprietary network analysis to forecast weekly equity market direction," according to its website.
- • Vokovic previously operated Oraclum Intelligence Systems, a UK-based venture established in 2016, before launching the U.S. hedge fund operation.
Summary
Federal prosecutors have charged Vuk Vokovic, founder of Oraclum Capital, with securities fraud and wire fraud stemming from allegations that the New York-based hedge fund systematically fabricated investor statements to misrepresent fund performance. The charges carry maximum penalties of 20 years in prison on each count.
According to the U.S. Attorney's Office for the Southern District of New York, Oraclum—which manages the Orca Bason Fund—executed a scheme designed to attract investor capital and prevent redemptions through the submission of false performance reports. U.S. Attorney Jamie McDonald stated in a press release that Vokovic "attracted investors to his fund and lulled them into keeping their money invested by reporting high rates of return that were not real," emphasizing that investors are entitled to "honest and accurate information when deciding where to put their hard-earned money."
Oraclum was established in 2022 following Vokovic's prior venture, Oraclum Intelligence Systems, which operated in the United Kingdom starting in 2016. The fund publicly identifies itself as employing proprietary analytical methods, specifically "wisdom-of-crowds research and proprietary network analysis to forecast weekly equity market direction," according to its marketing materials.
U.S. Postal Inspection Service inspector in charge Ketty Larco-Ward characterized the broader implications of the alleged fraud, noting that such schemes "threaten the economic stability and livelihoods of American citizens" beyond the immediate crimes themselves. The case underscores ongoing regulatory focus on performance misrepresentation within the alternative investment sector and the enforcement mechanisms deployed to protect institutional and individual investors from deceptive practices.
According to the U.S. Attorney's Office for the Southern District of New York, Oraclum—which manages the Orca Bason Fund—executed a scheme designed to attract investor capital and prevent redemptions through the submission of false performance reports. U.S. Attorney Jamie McDonald stated in a press release that Vokovic "attracted investors to his fund and lulled them into keeping their money invested by reporting high rates of return that were not real," emphasizing that investors are entitled to "honest and accurate information when deciding where to put their hard-earned money."
Oraclum was established in 2022 following Vokovic's prior venture, Oraclum Intelligence Systems, which operated in the United Kingdom starting in 2016. The fund publicly identifies itself as employing proprietary analytical methods, specifically "wisdom-of-crowds research and proprietary network analysis to forecast weekly equity market direction," according to its marketing materials.
U.S. Postal Inspection Service inspector in charge Ketty Larco-Ward characterized the broader implications of the alleged fraud, noting that such schemes "threaten the economic stability and livelihoods of American citizens" beyond the immediate crimes themselves. The case underscores ongoing regulatory focus on performance misrepresentation within the alternative investment sector and the enforcement mechanisms deployed to protect institutional and individual investors from deceptive practices.
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