Fraud

Hedge Fund Law: SEC Names David Gottesman as Deputy Chief Litigation Counsel

A member of the team that obtained admissions of liability as part of an $18 million settlement with hedge fund adviser Philip Falcone and his advisory firm Harbinger Capital Partners has been appointed as deputy chief litigation counsel in the Division of Enforcement by the SEC. David J Gottesman said, “I am honored to have the [...]

Fraud, Hedge Funds

Court Approves $1.8 Billion Settlement In SAC Hedge Fund Case

Steven Cohen’s hedge fund SAC Capital Advisors has received court approval on a record criminal settlement for insider trading on Thursday, as a US judge accepted a guilty plea from the hedge fund firm. CBS reports: “U.S. District Judge Laura Taylor Swain formally administered the sentence on Stamford, Conn.-based SAC Capital LP and three related entities based on [...]

Fraud, Hedge Funds

N.J.-Based Brokerage Firm Charged With Manipulative Trading

The SEC has charged the owner of a Holmdel, N.J.-based brokerage firm with manipulative trading of publicly traded stocks through an illegal practice known as “layering” or “spoofing.” The SEC also charged the owner and others for registration violations. Two firms and five individuals agreed to pay a combined total of nearly $3 million to settle [...]

Fraud, Hedge Funds

New York Hedgie Convicted Of Theft

Hedge fund founder and adviser Fredrick Douglas Scott, one of Ebony magazine’s “Top 30 under 30,” was sentenced to more than five years in prison for stealing over $1 million from investors. He pleaded guilty to engaging in a wire fraud conspiracy to steal over $1 million from investors and lying to officials from the SEC. Scott was the [...]

Fraud, Hedge Funds

Massachusets Retirement Board Accuses Fletcher Hedge Funds Of $50 Million Fraud

The Massachusetts Bay Transportation Authority (MBTA) Retirement Fund is suing New York hedge fund manager Alphonse Fletcher Jr., the Boston Globe reports. MBTA lost $25 million when Fletcher International Ltd, the master fund for the Fletcher group of hedge funds filed for Chapter 11 bankruptcy protection. “The lawsuit, filed Monday in New York, accuses Fletcher and his firm, Fletcher [...]

Fraud, Hedge Funds

$12 Million Fraud: Over 5 Years In Jail For Hedge Fund Manager

A NY hedge fund manager was sentenced to 5 and a half years in prison for defrauding investors in a $12 million scheme, Reuters reports this morning. Lloyd Barringer pled guilty in July 2013 to four counts of fraud: securities fraud, conspiracy to commit securities fraud, mail fraud, and conspiracy to commit mail fraud. The charges stem [...]

Fraud, Hedge Funds

Credit Suisse To Pay $196 Million In Fines

International banking firm Credit Suisse has agreed to pay $196 million and admitted to violating federal securities laws by providing cross-border brokerage and investment advisory services to U.S. clients without first registering with the SEC. Credit Suisse provided cross-border securities services to thousands of U.S. clients and collected fees totaling approximately $82 million without adhering to [...]

Fraud

Hedge Fund Trader Mathew Martoma Found Guilty

Former SAC Capital trader Mathew Martoma has been found guilty of insider trading in what is being called the most lucrative hedge fund insider trading cases ever prosecuted. “As the jury unanimously found, Mathew Martoma cultivated and purchased the confidence of doctors with secret knowledge of an experimental Alzheimer’s drug, and used it to engage in [...]

Fraud, Hedge Funds

Manhattan Private Equity Manager Charged With Stealing $9 Million

A Manhattan-based private equity manager, Lawrence E. Penn III and his firm Camelot Acquisitions Secondary Opportunities Management, have had their assets frozen in a case put forward by the SEC. Three entities and one other person were also implicated in the fraud. The SEC alleges that Penn and his longtime acquaintance Altura S. Ewers concocted a [...]

Fraud, Hedge Fund Strategy

JP Morgan Pays $1.7 Billion To Put Off Fraud Charges

In as settlement that defers criminal charges against JP Morgan until 2016, a US Judge has agreed to settle for a fine of $1.7 billion, Reuters reports. JP Morgan was being charged by the prosecution for it’s involvement in the Bernard Madoff hedge fund ponzi scheme. The charges being settled are, according to Reuters, “..the [...]

Fraud, Hedge Funds