Hedge Funds

Maybe This Whole K1 Thing Is Just A Big Misunderstanding

delraybeach.jpgThe arrests and the hundreds of millions of dollars in potential losses notwithstanding, is the alleged fraud at German fund of hedge funds firm just a simple case of lost in translation? Or an accounting snafu?
Cautioning against boldness, the firm’s auditor–a professor of finance and accounting at an august German institution of higher education–wants us to remember that “until now nothing has been proven.” After all, that country’s financial authorities and courts can’t even decide if the firm can even be regulated, let alone prosecuted.

K1’s founder, Helmut Kiener, is accused of ripping off his banks and brokers to the tune of $400 million. But this is a man who deals in euros, not dollars. How else to explain the fact that he’s listed his beachfront Florida home for twice what it’s worth?

Helmut Kiener, the K1 Group hedge-fund founder under arrest in Germany on suspicion of fraud, is seeking to sell his oceanfront home in Delray Beach, Florida, for $23 million to repay investors, people briefed on the matter said….
“They are not going to get $23 million,” said Sandra Strickland, an independent Realtor in Delray Beach, about 50 miles north of Miami, as she stood outside the house last week. “Right now, we are mostly flooded with $200,000-and-under properties,” said Strickland, who estimated it’s worth about $12 million.

The house, called by real-estate agent Premier Estate Properties “lavishly scaled yet eminently inviting, may be extravagant by Bernard Madoff standards . But it still features a chandelier over the bath tub and “exotic marble and onyx throughout.” Oh yea, and “at least five televisions hung from the ceiling” and “fingerprint access,” according to Bloomberg. Not to mention the “outdoor amphitheater.”
K1 auditor says would be “bold” to conclude fraud [Reuters]
German watchdog lacks bite in face of K1-type funds [Reuters]
Kiener Said to Seek $23 Million for Six-Bedroom Home in Florida [Bloomberg]

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20 Responses to “Maybe This Whole K1 Thing Is Just A Big Misunderstanding”

  1. guest says:

    Germans men – and some women – always seem to go for porn mustaches.
    Just sayin’

  2. guest says:

    It’s hard to believe you are worse than Greg.

  3. guest says:

    @2 please cut your throat and spare us.

  4. guest says:

    I believe I’m a bit late to the game on this one (haven’t had a chance to check DB until now), but did Greg get fired over the weekend? I see he’s no longer listed as an editor.

  5. guest says:

    1. Levin
    2. Shazar
    3. EP
    3. Hahn
    4. Greg
    5. Carney/Weisenthal

  6. guest says:

    Same MO, complete with the douchey clipart.
    Nice one, DB.

  7. guest says:

    I think that @2 is a part of the group that has such a crush on Bess that they can never accept any male that ever works with her out of pure jealousy. Granted Greg’s writing, not so great, but you could tell there is quite a bit of lust and envy in the peanut gallery.

  8. guest says:

    @5 you put EP over Hahn?

  9. guest says:

    @6 if you actually read the post, you’d see that no, they do not have the same MO. oh, and kill yourself.
    @5 no fucking way ep bests hahn.

  10. guest says:

    this article blows…GUYS!!
    -dennis kneale

  11. guest says:

    And to think I thought Greg was bad.

  12. guest says:

    Shazam: totally missed the opportunity for some Sprockets mention or a better pic depicting chains, ball gags, or turbo-charged ass hammers.
    -Dennis Kneale

  13. guest says:

    @7 I’m pretty sure it’s because Levin is actually an entertaining writer whereas everyone else tends to write the same boring trash you can find anywhere else.
    The reason the peanut gallery savages everyone else is because doing so through the comments is the only way to make those posts worth anything.

  14. guest says:

    Too Greg, didn’t need

  15. guest says:

    Totally wrong.
    1. Levin/Carney
    2. Dealbreaker (Spiers)
    3. EP/Hahn
    No one else deserves mention. Finis.

  16. guest says:

    Bess also has the stories to hit the easiest home runs with to be fair to “everyone else”. Jeffrey Chiang, Wideclops, business news personalities, are all Bess’ domain with a few rare exceptions.

  17. guest says:

    @16 enough with this argument. when bess was away for two weeks in august, greg had run of all “easy” stories he wanted, and still sucked ass.

  18. guest says:

    Jon are you writing for two publications at the same time?

  19. guest says:

    @18 it’s odd that you’re trying to make this an “issue,” considering that DB made his name on the masthead hyperlink to FINalternatives, and clearly knows he’s working there as well.

  20. Anal_yst says:

    are you kidding?