Hedge Fund Focus

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, [...]

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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 [...]

Yesterday the Senate Banking Committee held a hearing on the Madoff scandal.  Those present included: Senator Christopher J. Dodd; Professor John C. Coffee, Adolf A. Berle Professor of Law, Columbia University Law School; Dr. Henry A. Backe, Orthopedic Surgeon; Ms. Lori Richards, Director, Office of Compliance Inspections and Examinations, U.S. Securities and Exchange Commission; Ms. [...]

Blogs have become important tools in the investment management industry and have allowed even the most unsophisticated computer user (ahem….hedgefundlawblog….) to post useful thoughts and information for other industry participants to examine and opine upon.

Some hedge fund managers may want to use the internet and blogs to vet ideas or to discuss certain parts of [...]

SEC Charges Madoff Auditors With Fraud
FOR IMMEDIATE RELEASE
2009-60
Washington, D.C., March 18, 2009 — The Securities and Exchange Commission today charged the auditors of Bernard Madoff’s broker-dealer firm with committing securities fraud by representing that they had conducted legitimate audits, when in fact they had not.
Additional Materials
In its complaint filed in federal court in Manhattan, the [...]

SEC Charges Madoff Auditors With Fraud
FOR IMMEDIATE RELEASE
2009-60
Washington, D.C., March 18, 2009 — The Securities and Exchange Commission today charged the auditors of Bernard Madoff’s broker-dealer firm with committing securities fraud by representing that they had conducted legitimate audits, when in fact they had not.
In its complaint filed in federal court in Manhattan, the SEC [...]

SEC Charges Los Angeles-Based Investment Adviser for Taking Warrants Paid for by Clients
FOR IMMEDIATE RELEASE
2009-40
Washington, D.C., March 3, 2009 — The Securities and Exchange Commission has announced an enforcement action against Los Angeles-based investment adviser M.A.G. Capital LLC and its president and sole owner, David F. Firestone, for taking warrants from three hedge funds that [...]

Securities and Exchange Commission Charges Ray M. White, of Mansfield Texas, With Ponzi Scheme
On March 4, U.S. District Judge Ed Kinkeade, for the Northern District of Texas, Dallas Division, appointed a receiver and froze the assets of a Mansfield, Texas resident who is alleged to have raised at least $10.9 million from over 250 investors [...]

SEC v. Shelby Dean Martin, D. Martin Enterprises, Inc. and DM Ventures, LLC
The Commission announced that on March 6, 2009, it filed a Complaint in the United States District Court for the Western District of North Carolina to halt an ongoing Ponzi scheme. The Complaint was filed against Shelby Dean Martin (Martin), D. Martin Enterprises, [...]

SEC Obtains Emergency Asset Freeze to Halt Multi-Million Dollar Real Estate Investment Fraud
The Securities and Exchange Commission yesterday charged Los Angeles resident Bruce Friedman and two of his companies with securities fraud, and obtained an emergency court order to freeze their assets and halt an alleged ongoing investment scheme involving purported real estate and mortgage [...]