Again, just one of those things I thought you needed to know. Unlike Pappajohn Capital and the Misfit Barbarian Fund, however, this name is now up for grabs, as the firm and its partners have been sued by the SEC. In the likely event they must close up shop, this baby’s yours! Read more »
As was expected, the Justice Department announced just now that is has charged 500 people in its “largest-ever crackdown on scam artists.” According to officials, the losses cost victims millions in some cases with the total tab coming to $8.3 billion “These are staggering, staggering numbers,” Attorney General Eric Holder said. But you know what hurts more than the money? The lost of trust. Never again will these people be able to believe a money manager when he promises huge ass returns or when he says he has no idea why that tramp was sending him nude text messages. Thus, the name of the 3.5 month long investigation was appropriately named: Operation Broken Trust. Read more »
This afternoon, Connecticut regulators accused investment adviser Southridge Capital and its chief executive Stephen Hicks of “preparing false financial statements” that “inflated the assets of five funds from 2004 through 2007 so that they could charge higher fees,” in an alleged scam that netted them an ill-gotten $26 million. Additionally, many investors have apparently put in redemption requests as far back as 2001, though none of them have seen a dime. Attorney General said the firm told “lucrative lies” which hurt not only its clients “but also the entire economy.” How is Hicks taking the news? Is he ashamed and/or embarrassed? Is he defiantly calling the charges bogus, telling family and friends he’ll fight them? Is he proud of what he’s done and the alliterative prose he inspired in Blumenthal? Or does have no idea he’s been accused of anything, having only seen a bunch of missed calls on his phone? Read more »
Remember Paul Greenwood? He didn’t get as much press as some other hedge fund managers running Ponzi schemes, even though he should have, if only for the fact that he spent a good deal of investor money on a 1,348 teddy bears, valued at $3 million in total, showcased in “collector display cabinetry” at the top of a dramatic spiral staircase in his home and kept track of via a spreadsheet that noted specifics like “full-dressed in sailor suit, lavender-tipped mohair coat [and] felt spats. Anyway, he admitted today that he financed this passion via a “sort of” Ponzi scheme. Read more »
Remember Ross Mandell, the Sky Capital founder who was accused of conspiracy and securities fraud in a scam that was (allegedly!) perpetrated using “boiler room-like tactics,” which could result in him going downtown for 25 years? He’s pretty sure he’s innocent and he’s like to share that innocence with the world. Read more »
Apparently the SEC has discovered fraudsters trying to impersonate their own intrepid investigators, using fake email addresses containing .gov in the domain. Most of these characters are fishing around on tranny porn web sites (likely running into real SEC officials) for naive investors who will pay them fees to remove restrictions on sales of stock they own.
In a complaint released today, Cuomo says Ivy knew about Bernard Madoff’s giant Ponzi scheme, but intentionally lied to clients because it feared losing over $40 million in fees from the Madoff investments.
Cuomo cites internal emails from Ivy employees joking about Madoff being a fraud even while they were keeping their clients in the dark. Ivy investors, including 76 upstate New York union pension and welfare plans, lost a total of $227 million in Madoff.
The suit also names former Ivy execs Lawrence Simon and Howard Wohl, who Cuomo said “left their clients in the dark” about Madoff even after they had determined they weren’t “satisfied as a fiduciary to invest client assets” with Madoff. Read more »