Alan Fishman, the limo driver-cum-hedge fund manager president who admitted last year to screwing AR Capital investors just a little bit, has pleaded guilty to fraud (Fishman had caught the investing bug while driving around a bunch of investment bankers and lawyers, and decided one day to “take a crack at his customers’ game”).

A gentleman named Gary Gelman, who is Mr. Fishman’s nephew, was trying to launch a hedge fund. Although Mr. Fishman had no prior experience managing money, in 2003 he became president of the A.R. Capital Global Fund, which operated from a small office on 39 Broadway in lower Manhattan. Using cold calls, the fund lured in 70 clients who invested about $20 million.

The fund managers told investors they would buy shares in overseas real estate companies and trade currencies, oil, gas and other commodities while using “active, leveraged trading” and “fundamental and technical analysis” to make money. None of this was true, according to prosecutors. Instead, client money was invested in three Ukrainian stocks or parked in a Ukrainian money market fund. Millions more were wired to bank accounts in Lithuania, including one held by a company located in St. Kitts and Nevis.

Everything was going pretty okay until one rat-bastard of a client had to come to New York and request a meeting, which was held in a deli. That’s when things started to go downhill. Now, Crain’s reports, Fishman has pleaded guilty to conspiracy to commit securities fraud (and is scheduled to be sentenced on June 18), and has ruined it for all the legit cabbie turned hedge fund managers out there. One bad seed– all it takes.

Limo driver-turned-hedge fund fraudster admits guilt [Crain's via BI]

Comments (59)

  1. Posted by Anonymous | March 9, 2010 at 5:20 PM

    Someone will have to explain the fake part

  2. Posted by biff | March 9, 2010 at 5:39 PM

    All that AR Capital is missing is a ‘Q’

    - just sayin’

  3. Posted by confused | March 9, 2010 at 5:45 PM

    cum-hedge fund manager?

    does this have something to do w/ dental-dams for your face…to protect against airborn horse ejaculate pies?

  4. Posted by ehhh | March 9, 2010 at 5:55 PM

    yeah…that one was a bit of a stretch. basically i just want to write “horse ejaculate pie”

    that is all

    -3

  5. Posted by Anonymous | March 9, 2010 at 6:04 PM

    @4 I see you’ve been reading bess– i mean lucas van praag’s- twitter?

  6. Posted by Anal_yst | March 9, 2010 at 6:06 PM

    So the dude was slick enough to get all these obscure offshore accounts open, but didn’t have the most critical (and really not that difficult) part, the inevitable b-line when he got found out?

    Sigh…

  7. Posted by Playa | March 9, 2010 at 7:10 PM

    That is an outrageous story. 20 million in cold calls. That’s some sweet rap.

  8. Posted by Anonymous | March 9, 2010 at 7:58 PM

    @7 Seriously.

  9. Posted by Anonymous | March 9, 2010 at 8:11 PM

    Beth -
    You really need to deal with these IT assholes of yours now, and get this mess fixed. A couple of 16 year old geeks tossing off in their Mom’s basement could have had the problem fixed days ago. Hire them, and lets get back to normal.
    Cliff A.

  10. Posted by Anonymous | March 9, 2010 at 8:23 PM

    @biff- why don’t you check out the masthead and email david minkin/matt creamer?

  11. Posted by Anonymous | March 9, 2010 at 9:10 PM

    Matt Creamer is a pretty good porn star name.

  12. Posted by Anonymous | March 10, 2010 at 6:17 AM

    Must have been inspired by “Market Wizards”

  13. Posted by Greg Michaels | March 10, 2010 at 8:27 AM

    Please stop complaining about the IT difficulties. I am working on it furiously.

  14. Posted by NakedShort | March 10, 2010 at 10:58 AM

    Moment of silence for Corey Haim

  15. Posted by Greg Michaels | March 10, 2010 at 11:03 AM

    Where the F%&k does this plug go??

  16. Posted by Corey Feldman | March 10, 2010 at 11:04 AM

    He was the quintessential thespian indeed!

  17. Posted by guest | March 10, 2010 at 11:06 AM

    Anybody who invests big bucks with a limo driver who cold calls them should be deprived of all their money, and forcibly sterilized to prevent future generations of Morons from tying up law enforcement resources trying to get back money they were stupid enough to throw away…..

  18. Posted by Mitch Cumstein | March 10, 2010 at 11:07 AM

    NS,

    God fucking damnit. Just when DB starts working, Bess has to sit shiva.

    See you on 03/17/2010.

  19. Posted by Anonymous | March 10, 2010 at 11:07 AM

    I have a photo of the crack Dealbreaker IT guys latest attempt to keep the site up for more than 20 minutes!!!!

    http://www.unsoughtinput.com/wp-content/uploads/2006/12/sikh.jpg

  20. Posted by NakedShort | March 10, 2010 at 11:09 AM

    @MC/18

    whatd I do?

  21. Posted by Boxme | March 10, 2010 at 11:10 AM

    I’ve got a guy -

  22. Posted by Mitch Cumstein | March 10, 2010 at 11:18 AM

    NS: זכותו יגן עלינו

    http://www.youtube.com/watch?v=LgR0tF1XXRQ

  23. Posted by 50nClassy | March 10, 2010 at 11:18 AM

    Greggums,

    I’m pulling my hair out looking for a personal item you may have taken. It was in my top drawer, is about 9 inches long and made of smooth silver. PLEASE tell me you are not using it for your technology experiments again down at the office. I need it back.

    Love,

    Greg’s Mom

  24. Posted by NakedShort | March 10, 2010 at 11:20 AM

    @22 got it. The shiva thing threw me for a loop. I am not a “chosen person”.

  25. Posted by Anonymous | March 10, 2010 at 11:33 AM

    Bess I hope you’re at least taking some vacay during this epic fail

  26. Posted by Bess Levin | March 10, 2010 at 11:38 AM

    @25 I would except that we never know when things are actually going to work. For instance yesterday AM? Working! This morning? Not so much! Tomorrow? WHO THE FUCK KNOWS.

  27. Posted by InfiniteGuest | March 10, 2010 at 11:41 AM

    At this point pretty much all reasonable people agree that DealBreaker’s recent technical crisis was caused by speculation in credit derivatives.

  28. Posted by NakedShort | March 10, 2010 at 11:49 AM

    @26/BL Six words. HTTP 500 Internal Server Error Swaps.

  29. Posted by Tax Chick | March 10, 2010 at 11:50 AM

    For fuck’s sake!!!!

  30. Posted by Greg Michaels | March 10, 2010 at 11:54 AM

    @23 / Dear Mom,

    Yes it was me that borrowed it, but it is not like last time. I lent it to my old co-worker Bess. She said the computer guys at her place tripped on some wires agian, and she has no electricity. Since she wore out the battery on her twelve inch ebony model she asked if I could get her another one.

    Greg

  31. Posted by Anonymous | March 10, 2010 at 12:04 PM

    The amount of time Dealbreaker works and the number of tweets from Lucas van Praag seem to be inversely related

    -AIG Quant now “working” as Dealbreaker IT staff

  32. Posted by volatilitysmile | March 10, 2010 at 12:12 PM

    @22(NS)
    Yes. You. Are.
    L’chaim

  33. Posted by volatilitysmile | March 10, 2010 at 12:13 PM

    @24(NS)
    Yes. You. Are.
    L’chaim

  34. Posted by Anonymous | March 10, 2010 at 12:17 PM

    Can’t feel bad for morons

  35. Posted by Anonymous | March 10, 2010 at 12:22 PM

    GS is somehow involved in this.

  36. Posted by volatilitysmile | March 10, 2010 at 12:24 PM

    @ 34 Morons or not, matter turns to light, for all of us.

  37. Posted by HeadlessHorseman | March 10, 2010 at 12:31 PM

    @ Tax Chick,

    Agreed.

    Bess,

    I think the problem might be DealBreaker’s power source for its servers (i.e. the hamster died – check his wheel).

  38. Posted by Louis Winthorpe III | March 10, 2010 at 12:40 PM

    Sorry to get serious for 5 here, but can anyone reassure me that the VIX will return to some respectable levels? And by “reassure” I mean throw me some half-convincing bullshit.

  39. Posted by Investorcluzo | March 10, 2010 at 12:44 PM

    dear breaking meadia llc,
    I understand you are looking for qualified individuals in IT seeking a new challenge. If hired, I will utilize my skills to bring your operation to a level unparalled among the blogosphere.

    -jr. asst. IT manager for jfk internet service, jetblue terminal

  40. Posted by Anonymous | March 10, 2010 at 12:48 PM

    Bess, bail on the “Twitter” and “Facebook” links.
    Plus the 35% of the page “sponsored content” may be what is reaking havoc with the DB website. Who reads that stuff anyway?

  41. Posted by Investorcluzo | March 10, 2010 at 12:49 PM

    “media” -@39

    @38 – I’d like to see the vix at 30, STAT. damn call options at 25 are about to expire next friday, fk!

  42. Posted by volatilitysmile | March 10, 2010 at 12:51 PM

    I had the most absurd nightmare. I was poor and no one liked me. I lost my job, I lost my house, Itchiko hated me and it was all because of this terrible, awful VIX.

    Think big, think positive, never show any sign of weakness. Always go for the throat. Buy low, sell high. You make no friends and you take no prisoners. One minute you’re up half a million in VIX and the next, boom, your kids don’t go to college and they’ve repossessed your MB SLS.

  43. Posted by Anonymous | March 10, 2010 at 12:56 PM

    Have they checked the flux capacitor yet? That is most likely the problem.
    McFly

  44. Posted by guest | March 10, 2010 at 12:57 PM

    meantime there’s always “texts from last night.”

  45. Posted by Anonymous | March 10, 2010 at 1:02 PM

    @23, what did ever happen to Greggums?

  46. Posted by Louis Winthorpe III | March 10, 2010 at 1:16 PM

    Well at least I’m not alone. This VXX is killing me. Greg @30, make yourself useful and go scare a majority of the investing American public.

    -38

  47. Posted by Anonymous | March 10, 2010 at 1:25 PM

    @46 You are long VXX? WTF?

  48. Posted by volatilitysmile | March 10, 2010 at 1:28 PM

    @38&41 – the only two ways for VXX to unfold are: moving average trends lower, or VXX goes mf up from lower bollinger.

    Ironically, do I see correctly that the volatility of that biatch VXX is recently decreasing? Talk about irony here…

  49. Posted by Louis Winthorpe III | March 10, 2010 at 1:35 PM

    @47- Got it a couple weeks ago when Greece was “blowing up.” Now I’m trying to figure out when to unload. Fucking Europeans.

  50. Posted by Investorcluzo | March 10, 2010 at 1:35 PM

    @vol – let’s see mkt up 60%+ from the highs, am I crazy to expect a little pullback? that’s why I’m long ~1% move in market = ~5% move in the vix.

  51. Posted by NakedShort | March 10, 2010 at 1:40 PM

    My ass still hurts from when I was long vol last spring. Dammit I need a smoke.

    -J. Simons

  52. Posted by Louis Winthorpe III | March 10, 2010 at 1:46 PM

    @cluzo- Exactly, that’s why I’m still holding on. These +/- 10 days on the dow are so obnoxious.

  53. Posted by mrpink | March 10, 2010 at 1:48 PM

    Get those brokers back in here! Turn those machines back onnn! Turn those machines back onnnnnnnnnnnnn!

  54. Posted by Investorcluzo | March 10, 2010 at 1:52 PM

    Let’s not forget – 3 big quakes already this year, does the mkt think this will bring growth? California could an island soon, how about a little panic?

  55. Posted by Investorcluzo | March 10, 2010 at 1:55 PM

    “Could be” – sorry on my bberry.

  56. Posted by volatilitysmile | March 10, 2010 at 1:55 PM

    @ LW III & IC: Looking good, bros. Volatility makes me smile. It’s my second nature.

  57. Posted by inGstaad | March 10, 2010 at 2:19 PM

    Almost makes me second guess the investment I made in my cabbie’s PE shop…almost.

  58. Posted by guest | March 11, 2010 at 1:47 AM

    Layoff the IT dept. You try combining work at McDonalds with IT and see how hard it is!

  59. Posted by Claire @ nyc limos | March 21, 2010 at 11:39 PM

    I think it’s only 99% safe investing with a company that has been around for years, although it may take time for you to get a return on it, it’s still better than losing it all.

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