Fraud
India: Suicides Mount In Investment Ponzi Scheme
A director at a investment company based out of West Bengal, India has been killed and there have been 11 suicides among the victims of the scam reported so far, including a 16 year old wage-labourer who had invested in the scheme. The founder of Saradha Group, Sudipta Sen, is currently in police custody, following the revelation that his venture fund was [...]
Chiasson Gets Over 6 Years For Hedge Fund Insider Trading
Hedge Fund manager Anthony Chiasson, who was found guilty of insider trading charges back in December 2012, was yesterday sentenced to six and a half years in prison by Judge Sullivan, of the Federal District Court in Manhattan. The Judge was shocked by the hedge fund manager’s annual income listed on his tax returns. “$16 [...]
Maiden Hedge Fund Manager Faces 20 Years For Hiding Losses
Charlotte hedge fund manager Stephen Ewing Maiden has agreed to pleaded guilty to securities fraud for hiding investment losses that cost his victims at least $8.9 million, according to court documents. “According to court records, Maiden hid losses in his hedge fund, called the Maiden Capital Opportunity Fund, by routinely sending “bogus account statements” to investors and the [...]
Hedge Fund Fraud: Man Employee Arrested
An unidentified employee in hedge fund giant Man Group’s GLG division was arrested last week on suspicion of insider trading. The UK Financial Services Authority (FSA) announced the arrest of three fund management employees in London. “The investigation concerned the employee’s actions as a private individual, and not as an employee, and that neither Man nor GLG was [...]
Connecticut Hedge Fund Managers Charged With Securities Fraud
Connecticut-based hedge fund managers David Bryson, Bart Gutekunst and their advisory firm, New Stream Capital, LLC, have been accused of lying to investors about the capital structure and financial condition of their $750-plus million hedge fund focused on illiquid investments in asset-based lending. The SEC also charged New Stream Capital (Cayman), Ltd., a Caymanian adviser entity affiliated [...]
Fake Hedge Fund Manager Gets An SEC Asset Freeze
The SEC has announced an asset freeze against a Massachusetts-based investment adviser charged with stealing money from clients who were given the false impression they were investing in a hedge fund. The SEC alleges that Gregg D. Caplitz and Insight Onsite Strategic Management in Wilmington, Mass., raised at least $1.1 million from clients that was [...]
Hedge Fund Manager Convicted by Jury In Black Diamond Ponzi Scheme
A Federal jury has convicted a certified public accountant Jonathan D. Davey, 48, of Newark, Ohio, of four criminal charges relating to an investment fraud conspiracy, the FBI reports. The federal indictment, returned in February 2012, charged Davey with serving as the “administrator” for numerous hedge funds for the Black Diamond Ponzi Scheme; with soliciting [...]
Hedge Fund Fraud: Wireless Analyst Sentenced to 4+ Years
The securities research analyst who had publicly refused in 2010 to wear a wire in a hedge fund insider trading trading probe was sentenced yesterday to over four years in prison, Bloomberg’s HedgeWorld reports. John Kinnucan admitted that he supplied hedge funds with illegal tips. He has remained in custody since his arrest in 2012 [...]
California Hedge Fund Manager Jailed For Fraud
Albert Ke-Jung Hu, a silicon valley hedge fund manager, has been jailed for 12 years on charges of defrauding investors out of at least $6.5 million. “Instead of investing the money as promised, Hu “converted that money for his own personal use and for other non-investment purposes,” according to an indictment.” Bloomberg reports. A federal jury in June [...]
Three Unregistered Brokers Charged For Improper Sales Of Hedge Fund Interests
The SEC has charged three brokers who raised funds for an Oregon-based hedge fund manager for failing to register as broker-dealers before engaging in securities transactions. “Broker-dealer registration is crucial to protecting investors from Ponzi schemes and other scams,” said Marc J. Fagel, Director of the SEC’s San Francisco Regional Office. Registered brokers are subject [...]
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