Hedge Fund Manager Caught in Ponzi-Like Scheme Defrauding Investors
On June 24th, 2009, the SEC today charged Moises Pacheco of Advanced Money Management, Inc. (AMM) and Business Development & Consulting Co. (BD&C) with operating a Ponzi-like scheme through five hedge funds. The SEC complaint alleges that Pacheco, AMM, and BD&C violated the securities registration and antifraud [...]
Former MA Investment Adviser Sentenced to Ten Years for Defrauding Investment Advisory Clients
On May 14th, 2009, Amit Mathur was sentenced to ten years in federal prison on federal mail and wire fraud for defrauding his investment advisory clients. The Commission filed its action against Mathur and his advisory firm (Entrust Capital Management) on April 12, [...]
The two press releases below from the SEC showcase what can happen if a manager is found to have perpetrated a fraud against investors.
****
Michael Lauer to Pay More Than $62 Million in Hedge Fund Fraud Case
FOR IMMEDIATE RELEASE
2009-106
Washington, D.C., May 8, 2009 — The Securities and Exchange Commission announced today that Michael Lauer, the head [...]
SEC Charges Connecticut-Based Hedge Fund in Multi-Million Dollar Fraud
FOR IMMEDIATE RELEASE
2009-90
Washington, D.C., April 27, 2009 — The Securities and Exchange Commission today obtained an emergency court order to freeze the assets of a Connecticut-based money manager and the hedge funds that he controls, alleging that he forged documents, promised false returns, and misrepresented assets managed [...]
Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against Austin Capital Management Ltd.
SAN DIEGO–(BUSINESS WIRE)–Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) (http://www.csgrr.com/cases/austincapital/) today announced that a class action has been commenced on behalf of institutional investors in the United States District Court for the Southern District of New York [...]
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20993A / April 8, 2009
SEC v. Lydia Capital, LLC et al, U.S. District Court for the District of Massachusetts, 07-CV-10712-RGS
Court Enters Final Judgment Against Massachusetts Hedge Fund Manager in Fraud Scheme
The Securities and Exchange Commission announced today that the Massachusetts federal district court entered a Final Judgment on [...]
FOR IMMEDIATE RELEASE
2009-51
Washington, D.C., March 9, 2009 — The Securities and Exchange Commission today charged a money manager with offices in New York and Rhode Island for falsely creating a billion-dollar client in order to gain credibility and attract legitimate investors.
In its complaint, the SEC charged Leila Jenkins and her firm, Locke Capital Management Inc., [...]
On March 12, the Commission filed a complaint in the United States District Court for the Southern District of New York alleging that two brokers, David Harrison Baker (Baker) and Daniel Schreiber (Schreiber), and the broker-dealer with which Schreiber was associated, Granite Financial Group, LLC (Granite), paid bribes to Brian Travis (Travis) and Nicholas Peter [...]
Acting United States Attorney Lawrence G. Brown Eastern District of California
FOR IMMEDIATE RELEASE
CONTACT: Lauren Horwood
Friday, March 20, 2009
PHONE: 916-554-2706
www.usdoj.gov/usao/cae
usacae.edcapress@usdoj.gov
FOLSOM MAN CHARGED IN $40 MILLION PONZI SCHEME
Leader of Investment Scam Defrauded 150 Investors, Many from His Church Second Man Charged with Impersonating a Federal Agent and Attempted Extortion
SACRAMENTO, Calif.—Acting United States Attorney Lawrence G. Brown, [...]
(http://www.hedgefundfocus.com)
Jacksonville Man Sentenced to 10 Years in Prison for Operating Ponzi Scheme Under the Guise of a Foreign Currency ‘Hedge Fund’
Defendant Defrauded Investors of More Than $23 Million in Less Than 5 Years
ATLANTA, March 31 /PRNewswire-USNewswire/ — Manyu Ogale, 44, of Jacksonville, Fla., was sentenced today by U.S. District Judge Richard W. Story to 10 [...]