Disgraced hedge fund founder Stephen Maiden is set to testify Wednesday against two former business associates who stand accused of manipulating shares in the video-software company KIT Digital Inc. before it filed for bankruptcy, Bloomberg News reported. KIT’s former Chief Executive Officer Kaleil Isaza Tuzman and tech industry entrepreneur Omar Amanat are accused of using Maiden’s fund to mask KIT’s failing finances and to hide massive trading losses at an investment fund run by Amanat’s brother. In February 2015, Maiden was sentenced to seven years in prison for carrying out an $8.9 million Ponzi scheme that ripped off 39 victims. When his Charlotte, N.C.-based fund ran out of cash, Maiden started sending his customers bogus account statements. Testifying against Amanat and Tuzman could aid Maiden in seeking an early release.
