Palm Beach Money Managers Indicted


Shockingly, this time it has nothing to do with soliciting prostitution.

The three principals of the KL Group in West Palm Beach, Fla., a firm that operated many hedge funds that collapsed in early 2005, were indicted yesterday, accused of orchestrating an extensive fraud that raised more than $194 million from at least 250 investors.
The three, Won Sok Lee, Yung Bae Kim and his brother Jung Bae Kim, who was also known as John B. Kim, are accused of promoting the KL hedge funds as successful, when, in fact, some of the funds suffered losses every quarter of their existence.

3 at Florida-Based Hedge Fund Accused of Misleading Investors [New York Times]