Archive for the ‘Hedge Funds’ Category

Follow the Money - Hedge Fund Managers

Tuesday, May 26th, 2009

The U.S. Securities and Exchange Commission (SEC) has charged Wisconsin-based Wealth Management LLC, and its principals, James Putman and Simone Fevola, with securities fraud in connection with investment pools that the defendants operated.  Among the SEC’s allegations is that the defendants inflated the supposed returns for the funds in order to maximize the compensation to the hedge fund managers. (more…)

IW CEO Quoted in Connection with Nadel Ponzi

Wednesday, April 15th, 2009

As the Nadel Ponzi scheme continues to be investigated, the court appointed Receiver, Burton Wiand, has released his first interim report.  He made it clear that he plans to take legal action against Neil and Christopher Moody, Nadel’s business partners.  (more…)

One Hand Washes the Other

Friday, March 20th, 2009

The U.S. Securities and Exchange Commission (”SEC”) has filed charges against two brokers and two hedge fund employees with a scheme by which the brokers bribed the hedge fund employees to direct hedge fund trades to the brokers.  Hedge funds buy so many shares at a time that the broker who makes the trade gets enormous commissions.  The SEC’s litigation release reads, in part: (more…)

Hedge Fund Danger

Friday, October 17th, 2008

TIME magazine reports that hedge funds “lost nearly $300 billion due to bad investments in the first nine months of the year,” and quotes a hedge fund advisor as saying, “The losses should concern every investor because they are supposed to be the smartest guys out there.” (more…)

SEC Gets Judgment Against Architect of $1.1 Billion Hedge Fund Fraud

Friday, October 3rd, 2008

The U.S. Securities and Exchange Commission (SEC) has obtained a judgment against a hedge fund operator - Michael Lauer.  Lauer ran Lancer Management Group from South Florida, raising more than $1.1 billion from thousands of investors worldwide.  The SEC took emergency action to halt the scheme in 2003, obtaining an asset freeze and appointment of a receiver to gather assets for defrauded investors.  (more…)

World Financial Turmoil Means Increased Risk for Investors

Monday, September 29th, 2008

This morning I spoke to a reporter for a worldwide business publication.  She is doing a story on the up tick of complaints against brokers in the wake of the world financial turmoil.  She may be the first print reporter - but won’t be the last - to cover what will someday be described in history books as the “golden age of investment fraud.”  Credit markets have collapsed.  The bail out package has failed once.  Even if a version of it is passed by Congress and signed into law by the President, it will not head off an economic decline that may cross the line from recession into depression.  Not all sectors of the economy will suffer, though.  (more…)

SEC Obtains Judgment Against Massachusetts Hedge Fund Manager

Thursday, September 25th, 2008

The U.S. Securities and Exchange Commission (”SEC”) has obtained a judgment against Evan K. Andersen, of Boston, Massachusetts - formerly the head of a hedge fund called Lydia Capital, LLC - for defrauding more than 60 people out of more than $30 million. According to the SEC’s press release: (more…)

SEC Busts San Francisco Investment Adviser and Hedge Fund Author

Monday, September 1st, 2008

The SEC has charged Mark J.P. Boucher - a San Francisco investment adviser who published an investment newsletter and a book about hedge fund investing - with defrauding clients out of more than $20 million in connection with real estate deals. The Commission’s litigation release reads in part: (more…)

Israel Alive and Well and In Custody

Thursday, July 3rd, 2008

After Sam Israel, the mastermind behind the $450 million Bayou hedge fund fraud, left his car on a bridge high over the Hudson River with a note scrawled on the hood suggesting he had jumped to his death, we wrote a post called He’s Alive, predicting his capture in another country.  He didn’t get that far.  Yesterday Israel walked into a small town police station in Massachusetts - after three weeks on the lam - and turned himself in.  He claims that he tried to commit suicide by drug overdose, but woke up instead.  He’ll live to face his 20-year prison sentence, and likely 10 more years for his three-week vacation.

SEC Stops Unregistered Investment Adviser

Monday, June 30th, 2008

Doing what it does best, the Securities and Exchange Commission has obtained emergency relief shutting down an unregistered investment adviser in Massachusetts.  The SEC claims that Stephen F. Clifford and his business - Clifford Financial Advisors (CFA) - defrauded eight elderly clients out of roughly $3 million by: (more…)