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Chicago Finally Arrives At The Fraud Party

He is no Bernie or Danny Pang but Philip Baker is trying to do the midwest proud and raise the region's profile in the national fraud standings. Baker, former managing director of Chicago-based Lake Shore Asset Management Ltd., who is conveniently nowhere to be found, is accused of using false information to solicit over $300 million from investors to invest in commodity futures. Some of the promises Baker made with his fingers crossed behind his back were:
- that the commodity pools generated positive returns since 1993 -- including returns of more than 50 percent in one year -- when it actually experienced millions of dollars in trading losses;
-- that no management fee would be charged and participants would pay only a "profit incentive fee" if the pools generated profits, when in fact Baker charged more than $30 million in fees and converted millions in investor funds to his own use though the pools were not profitable; and
-- that he co-founded Lake Shore in 1993, and it was regulated by U.S. authorities, when in fact he was not officially associated until January 2007. There are no allegations of wrongdoing involving Lake Shore Inc.
Chicago hedge fund director sought for $300 million fraud [Chicago Sun Times]


CrossFit Promoter Accused Of Fraud Can Finally Workout In Peace Again

The entrepreneur accused of screwing over investors can pull tires around the gym tonight without a care in the world.