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    Hedge Fund Frauds

    SEC drops fraud case against San Francisco firm
    Mar 3 2007, San Francisco Chronicle
    The Securities and Exchange Commission has dismissed its civil fraud case against Global Crown Capital, a San Francisco investment company, after a court ruling raised questions about the commission's authority to go after hedge fund advisers who allegedly misled investors.

    SEC Files Settled Securities Fraud Charges Against Hedge Fund Adviser and One of Its Managing Members
    Feb 26, 2007
    The Securities and Exchange Commission (Commission) today filed a settled civil injunctive action against a Northbrook, Illinois hedge fund adviser, Crestview Capital Partners, LLC (Crestview), and one of its managing members, Stewart R. Flink, charging them with making fraudulent representations in connection with investments by Crestview-managed funds (Crestview funds) in two registered direct offerings.

    Attorney General Shuts Down Prince George's Hedge Fund
    Feb 22, 2007. ABC 7 News
    The Maryland attorney general's office says the operator of Prince George's County hedge fund, LaJon Capital Fund, illegally collected millions of dollars from investors, then lost most of it in bad investments.

    Hedge Fund Missing $28 Million Charged With Commodity Fraud
    Feb. 9, 2007. Andrews Publications
    The Commodity Futures Trading Commission named Renaissance Asset Management LLC, a hedge fund based in Roswell, Ga., and CEO Anthony Ramunno Jr. of Atlanta in a civil lawsuit filed in the U.S. District Court for the Northern District of Georgia.

    SEC Charges Family-Run Hedge Fund With A $3.7 Million Insider Trading Scheme
    Washington, D.C., Feb. 8, 2007
    The Securities and Exchange Commission today charged seven individuals with engaging in an insider trading scheme that netted over $3.7 million in profits and losses avoided over four years. The defendants include a father and his three sons, a family-run hedge fund, and other relatives and friends. The defendants also include accountants and lawyers at some of the nation's largest firms.

    CFTC Lodges Anti-Fraud Action Against New York Hedge Fund
    LawAndTax-News
    The US Commodity Futures Trading Commission (CFTC) announced the filing of a complaint in the US District Court for the Northern District of Georgia against Cornerstone Capital Management LLC, a New York-based hedge fund, and its chief executive officer, Joseph Profit II, of Atlanta.

    Vaughn's mom settles with SEC
    investmentnews.com
    Ms. Vaughn, sole owner of Directors Financial Group Ltd., Lake Forest, Ill., ran afoul of the SEC after allegedly defrauding investors in Directors Performance Fund LLC.

    Ex-hedge fund manager charged with fraud
    The Associated Press
    The former head of Idaho hedge-fund company Wood River Capital Management LLC has been indicted on criminal charges that he engaged in a securities fraud scheme that allegedly cost investors $88 million.

    Hedge fund operator sentenced for filing false statements in stock manipulation scheme
    The Associated Press
    Scott Sacane, who owned and controlled Durus Capital Management LLC admitted to a scheme in which he manipulated the price of two biotechnology stocks.

    Castle Rock man charged with fraud
    Christine Tatum, Denver Post Staff Writer
    A federal grand jury has indicted a Castle Rock man on charges of mail and wire fraud and money laundering related to an investment fund scheme known as "Global Prosperity Fund." Joseph A. Ferona, 45, is accused of bilking investors of more than $2.8 million.

    Man Released In Greenwich Hedge Fund Scam
    DON STACOM, The Hartford Courant
    Twenty months after he was jailed for trying to pass $43 million in counterfeit checks between New York and Swiss banks, Hakan Yalincak was released today - at least temporarily. The 22-year-old former Bristol man told reporters as he left a federal courthouse that more people will be arrested in a related crime, the multimillion-dollar Daedalus Relative Value Fund investment swindle.

    NFL Stars, Charmed by Kirk Wright, Lose Millions in Hedge Fund
    Monee Fields-White, Bloomberg
    When the FBI finally caught up with hedge fund manager Kirk Wright, he was lounging by the pool with his wife, Kilssis, at the Ritz-Carlton hotel in Miami's South Beach neighborhood.

    Hedge Fund Advisors Indicted In Alleged $190 Million Scam
    U.S. Department of Justice
    The Indictment alleges that John Kim and others orchestrated a massive investment fraud in the operation of various hedge funds under the umbrella of the KL Group, LLC, initially based in California and later in Palm Beach County. Also charged were Won Sok Lee and Yung Kim, John Kim’s brother, for participating in the massive scheme, in which nearly $195 million was received from investors between 2000 and 2005. Also indicted were three hedge fund advisor companies that were allegedly owned and controlled by the individual defendants: KL Group, LLC, KL Florida, LLC and KL Triangulum Management, LLC. The corporate defendants were charged only in connection with the investment fraud conspiracy.

    FSA fines GLG Partners and Philippe Jabre £750,000 each for market abuse
    1 Aug 2006
    Mr Jabre, on behalf of the GLG Market Neutral Fund which he managed for GLG, improperly short-sold ordinary shares in Sumitomo Mitsui Financial Group Inc (“SMFG”) to the value of $16 million ahead of an announcement of a new issue of convertible preference shares in SFMG. He had been “wall-crossed” and given advance confidential information on the prospective issue by Goldman Sachs International (“GSI”) who were pre-marketing the issue.

    Lone Star Funds indicted in South Korea
    Sangim Han and Yoolim Lee / Bloomberg
    Lone Star Funds was indicted Monday on charges of stock manipulation in South Korea, the latest blow to the Dallas-based buyout firm as it struggles to complete the sale of Korea Exchange Bank for a profit of more than $4 billion.

    Bond Denied For Manager In FBI Obstruction Case
    CBS Broadcasting Inc
    A Valencia hedge fund manager who admitted conspiring to defraud investors, then was rearrested for allegedly obstructing a probe into whether he laundered money, won't be let back out on bond. Keith Gilabert, 35, is accused of causing investors to lose more than $6 million of the $14 million invested in a fund run through his company, Capital Management Group.

    SEC files charges against hedge fund HMC, principals
    SIOBHAN HUGHES, The Associated Press
    The Securities and Exchange Commission on Wednesday moved to stop what it called an ongoing fraud at New Jersey-based hedge fund HMC International LLC orchestrated by manager Robert Massimi and the fund's top trader, Bret Grebow.

    CFTC Charges California Resident Gilbert Philip Castillo, Jr., and His Company, Castle Enterprise Corporation, with Fraud
    The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a complaint in the U.S. District Court for the Northern District of California charging that Gilbert Philip Castillo, Jr., and Castle Enterprise Corporation (Castle Enterprise), both of Walnut Creek, California, fraudulently solicited members of the general public while acting as unregistered commodity trading advisors (CTAs) in violation of the Commodity Exchange Act (CEA).

    Texas hedge fund manager settles for $1.68m
    10 May 2006. eFinancialNews
    Stuart Pippin, a Texas hedge fund manager, will pay $1.68m (€1.31m) to settle fraud charges for misappropriating nearly $2m he raised for his hedge fund, Pippin Investments.

    Bayou hedge fund fraud
    Samuel Israel III, Daniel E. Marino, and an associate, carried out a scheme to defraud investors in a family of hedge funds controlled by them directly and through defendant Bayou Management, LLC.

    CFTC Charges Philadelphia Alternative Asset Management Co., LLC, And Its President, Paul M. Eustace
    The U.S. Commodity Futures Trading Commission (CFTC) obtains federal court freeze of assets of philadelphia company and its president in fraud action involving hedge fund and $230 million commodity pool.

    SEC targets Lauer's Lancer in first big hedge fund case
    July 11, 2003. Canada StockWatch
    In the biggest blow to date for the largely unregulated hedge fund industry, the United States Securities and Exchange Commission has launched a major civil prosecution against the Lancer Group, a purported billion-dollar offshore hedge fund group based in Connecticut, and its head Michael Lauer, alleging the once highflying fund group was little more than massive rig job of largely illiquid penny stocks on the OTC Bulletin Board. Lancer's many clients include such celebrities as Alfred Taubman, the former chairman of Sotheby's, jailed for rigging art auction commissions, and the University of Montreal pension fund, which filed suit in the last week to recover $100-million (Canadian) it invested with Lancer.

    SEC charges hedge fund
    Jan 19, 2000 CNNMoney
    Manhattan Investment Fund Ltd., a hedge fund organized and managed by Berger, Manhattan Capital Management Inc., an investment adviser firm owned by Berger, and Berger himself have all been charged with hiding losses in excess of $300 million and, at the same time, reporting to investors returns of as much as 27 percent annually, the SEC said in a statement.

    SEC has filed at least 90 fraud cases in 4 1/2 years
    Bloomberg
    Securities and Exchange Commission chairman Christopher Cox said that hedge fund regulation is ``inadequate" and that Congress may need to demand more oversight of the $1.2 trillion industry.

    Here's what has happened to some of the guys accused of swindling millions.
    Amanda Cantrell, CNN/Money staff writer
    Here's a look at what's happened to the people involved in some of the most memorable hedge fund scandals in recent years.

    Disclaimer : The contents of this site are for information purposes only and does not constitute investment advice or counsel or solicitation for investment in any security. We will not be liable for any direct, indirect, incidental or consequential loss or damage that may arise out of using the information in this site or relating to a linked third party website. Investments in hedge funds involve a high degree of risk and you could lose all your investment. You should carefully read a fund's offering materials, fund manager's track record and related information for specific risk and other important information regarding an investment in that fund before investing. Hedge funds are available solely to accredited investors and institutional investors and not to general public. The information in this website is based on data gathered from publicly available websites and other information mediums therefore do not guarantee its accuracy, nor completeness. We do not represent any hedge funds or investment/financial advisors nor give any investment recommendations.

     

     
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