Tag Archives: investment advisor fraud

Another Ponzi Scheme

Broken Record

I’ve said it all before.  The following press release can be found here.  Please see the following articles on hedge fund and investment advisor fraud.

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Investment Advisor Fraud

Another Investment Advisor Ponzi Scheme

In the wake of the Madoff scandal the SEC is taking out other fraudulent investment advisory firms.  The release below details a south Florida investment advisor who perpetrated a multi-million dollar ponzi scheme.  As we noted in Lessons in Hedge Fund Due Diligence, it is so important for investors to conduct proper due diligence on their investment advisors or hedge fund managers. Continue reading

Hedge Funds Blindsighted by Massive Ponzi Scheme

According to a SEC release this morning (and every other financial news agency), major hedge funds, banks and other financial institutional were caught in a Ponzi scheme of epic proportions.  While it is hard to believe that such large groups were blindsighted by this, it does showcase the fact that fraud can happen to even sophisticated investors and that hedge fund due diligence (an ongoing due diligence) is absolutely required.  The SEC release is reprinted below. Continue reading

Investment Advisor Barred From IA Industry For Matching Trade Fraud

Hedge fund managers should not match trades between commonly managed accounts in thinly traded (or illiquid) securities as this may pose potential problems under the Investment Advisors Act of 1940.  This holds true whether the hedge fund manager is registered or unregistered.  As the release below shows, the manager may be subject to fines and/or other penalties for such trading.  If a hedge fund manager does wish to engage in such trading, he should discuss this option with a hedge fund attorney.  Please contact us if you have any questions.  Continue reading