Fraud

FBI Raids Company With Link To Wolf Of Wall Street’s Danny Porush

FBI agents have raided a Florida medical device company run by Daniel M. Porush, who’s character inspired that of  Donnie Azoff, in the movie Wolf Of Wall Street. An FBI spokesman said the agency is conducting “law enforcement activity in the vicinity.” Reporters saw dozens of FBI agents, the Florida Division of Insurance Fraud, and local police around the [...]

Fraud

Former Citadel Employee Arrested for Theft of Hedge Fund Trade Secrets

- A young science engineer whippersnapper, Yihau Pu, also known as “Ben” has been sentenced to three years in federal prison, the Chicago Tribune reports. The prosecution said he “meticulously planned and brazenly executed” the theft of sensitive trade secrets from two former employers of a trading firm in New Jersey and Citadel, LLC, a Chicago-based hedge fund [...]

Fraud, Hedge Funds

FBI Allege $311 Million Global Hedge Fund Fraud Scheme

New York (HedgeCo.Net) – Two business associates in the hedge fund management industry have been charged by the FBI with defrauding institutional investors and causing collective losses of more than $311 million. Helmut Kiener is charged by indictment with four counts of wire fraud, two counts of bank fraud, and three counts of money laundering, [...]

Fraud, Hedge Funds

Barclays Capital Pays $15 Million For Compliance Failures After Acquiring Lehman’s Advisory Business

Barclays Capital has agreed to pay a $15 million penalty and to undertake remedial measures after being charged by the Securities and Exchange Commission with failing to maintain an adequate internal compliance system to ensure the firm did not run afoul of any federal securities laws after its wealth management business in the U.S. acquired [...]

Fraud, hedge fund research

Senate: Hedge Funds Used “Basket Options” To Dodge Taxes

Over a dozen hedge funds are accused of misusing a complex financial structure to claim billions of dollars in unjustified tax savings and to avoid leverage limits that protect the financial system from risky debt, a Senate Subcommittee investigation has found. “These banks and hedge funds used dubious structured financial products in a giant game of [...]

Fraud, Hedge Fund Strategy, Hedge Funds

Louisiana Hedge Fund Manager Pleads Guilty To Fraud

A hedge fund manager has pleaded guilty to multiple counts of mail fraud based on his executing a $13 million investment fraud scheme that included victims in Louisiana, Mississippi, Texas and Florida, The Times-Picayune reports. He is scheduled for trial later this week. Zachary Holdman operated a hedge fund called Greenwing Capital Management, LLC. As the owner [...]

Fraud, Hedge Funds

Citigroup To Pay $7 Billion In Sub-Prime Mortgage Settlement

Citigroup has agreed to pay approximately $7 billion for its part in the financial crisis of 2008, the WSJ reports. Citigroup is accused of downplaying the risks of sub-prime mortgages when packaging them selling them to hedge funds, mutual funds and pension funds. “The penalty is appropriate given the strength of the evidence of the wrongdoing [...]

Fraud, Hedge Funds

Two Executives and A Hedge Fund Portfolio Manager Sentenced To Federal Prison

Eric M. Martin, Mark Megalli, and Richard T. Posey have been sentenced to federal prison for their roles in a multi-million-dollar insider trading conspiracy involving children’s clothing company Carter’s, Inc. stock. Mark Megalli worked at New York hedge fund Level Global Investors was the contact point for some of the insider trading, the FBI says. [...]

Fraud, Hedge Funds

Florida Hedge Fund Adviser Charged With $17 Million Fraud Scheme

A West Palm Beach-based hedge fund advisory firm and its founder have been charged by the SEC with fraudulently shifting money from one investment to another without informing investors, the South Florida Business Journal reports. The firm’s founder and another individual later pocketed some of the transferred investor proceeds to enrich themselves. “Investment advisers owe their [...]

Fraud, Hedge Funds

Hedge Fund Manager Balboa Gets 4 Years In Prison

A  portfolio manager for the now collapsed hedge fund Millennium Global Investments has been sentenced to 4 years in prison and 3 years of supervised release, The Wall Street Journal reports. Michael Balboa, a London-based hedge fund manager, was convicted in 2013 for providing fake valuations on Nigerian warrants at the height of the financial crisis. [...]

Fraud, Hedge Funds