Andrew Caspersen, a former managing director at PJT Partners’ Park Hill Group, was charged with securities fraud and wire fraud Monday.
Caspersen also faces a civil complaint filed by the Securities and Exchange Commission for the same fraud.
According to Reuters, Caspersen allegedly solicited $95 million in funds starting in July of 2015 from a number of investors, saying the money would be invested in another private equity firm. Instead, Caspersen allegedly used the money to invest on his own, losing significant amounts of investments through risky options trading.
PJT Partners fired Caspersen on Monday, according to a report from Bloomberg.
PJT Partners, a private equity advisor, was spun off of Blackstone Group in September 2015, and is run by former Morgan Stanley dealmaker Paul Taubman.
PJT is conducting their own internal review, said the Bloomberg report. Business Insider has reached out to PJT for comment and will update this story if we hear back.
In response to the news, PJT’s public traded stock fell by as much as 20%, but is only down just over 12% as of 12:45 p.m. ET.