A New York University student and his mother were indicted in Connecticut yesterday for allegedly duping investors into putting millions of dollars into fake hedge funds and then using the money to pay for the first installment of a $21 million pledge to the school, as well as a new Porsche.

The student, Hakan Yalincak, 21, and his mother, Ayferafet Yalincak, 50, both of them Turkish citizens, are charged with falsifying financial documents to convince seven businessmen to invest a total of $7.4 million in a bogus fund managed by the student, a senior who majors in history.

According to the four-count indictment, after making the $21 million pledge to NYU, the four-count indictment charges, the Yalincaks used publicity about the donation to convince more businessmen to invest in bogus hedge funds controlled by Mr. Yalincak.

The mother and son also allegedly doctored bank statements to create the impression they had more than $900,000 in bank accounts, the indictment charges. Actually, according to the indictment, balances were less than $30. The indictment also alleges that the first installment of the family’s gift to the university, $1.25 million, came from tainted funds. The school used the money to build a state-of-theart lecture hall, at the corner of 4th and Mercer streets, which bears the family’s name in silver lettering on its front.

A university spokesman, John Beckman, said that if it is proven the money belonged to someone else, the school will return it and strip the lecture hall of the family’s name.

A portion of the pledged donation was also earmarked to buy a new building for the General Studies Program at NYU, where Mr. Yalincak studied for his first two years at the school, and a professorship in Ottoman Studies.

Mr. Beckman said that the university completed background checks on the family and that nothing untoward turned up. Legal documents in Indiana say, however, that Ayferafet Yalincak spent two years in prison there in the 1990s for practicing medicine without a license, using the name and medical credentials of a Canadian doctor, Catherine Irene Kelly. In addition, to open a medical office in Indianapolis, she borrowed thousands of dollars from a local church and a pastor, who lent her money from his retirement fund, and, though she was not charged in connection with the loans, she did not repay them until it was made a part of her sentence.

One of Mr. Yalincak’s lawyers, Eugene Riccio, said his client denies the Connecticut charges.

The student’s mother is still seeking a lawyer, he said.

During a search of the family’s home in suburban Pound Ridge, police found more than 20 credit cards, including 13 in Mr. Yalincak’s name. Ayferafet Yalincak is $166,000 in debt, according to prosecutors.

Hakan, who federal prosecutors said also goes by the name John Sahenk, was originally arrested in May on federal charges of counterfeiting after trying to deposit fake checks for $43 million. He was denied bail at his hearing because of his risk of fleeing the country. His mother is scheduled for a bail hearing next week.

Omer-Bulent Yalincak, 51, the student’s father, has been named with his wife and son in a number of civil lawsuits, but he has not been charged with a crime.