Hedge Fund Manager Who Ripped Off Bear Stearns May Do 200 Years

Let this be a lesson to anyone hoping to avoid a couple centuries in prison-- nobody fucks with Jimmy Cayne's roach clip and gets away with it!
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Let this be a lesson to anyone hoping to avoid a couple centuries in prison-- nobody fucks with Jimmy Cayne's roach clip and gets away with it!

K1 Group founder Helmut Kiener, who was convicted in Germany of defrauding investors in a Ponzi scheme, was indicted by the U.S. for his role in a $311 million fraud, the U.S. Attorney in Philadelphia said. Kiener, a German national, is charged with four counts of wire fraud, two counts of bank fraud and three counts of money laundering based on allegations he devised a scheme to defraud Bear Stearns Cos. using hedge funds in the Bahamas and the Cayman Islands. Kiener’s partner John Tausche, 61, of Blowing Rock, North Carolina, was charged by information with one count of bank fraud and one count of money laundering. Kiener, 53, was convicted in 2011 and sentenced to 10 years and eight months in prison after confessing to using new investors’ money to make up for losses in the wake of the financial crisis. K1’s funds are being liquidated in the British Virgin Islands. Kiener’s personal assets were placed in insolvency proceedings in Germany.

Between March 2005 and December 2008, Kiener and Tausche allegedly funneled investment funds from Bear Stearns through the Oceanus Funds, an entity controlled by Tausche to give the impression that the investments were growing in size, according to today’s indictment...If convicted, Kiener faces a maximum of 200 years in prison and a maximum possible fine of $7.9 million. Tausche faces a maximum of 40 years in prison and a fine of $1.9 million.

K1 Hedge Fund Founder Kiener Indicted in $311 Mln Fraud [Bloomberg]

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Hedge Fund Manager Who Faked His Own Death Has A Few Theories About Other Famous Murders, Real And Imaginary

Remember Samuel Israel III? For those with short memories, SI3 is a former hedge fund manager who faked his own death in June 2008 with the help of his girlfriend, Debra Ryan, who later wrote an article explaining her actions by noting that she and Israel had "a blazing sex life" that was hard to walk away from (Ryan shared colorful anecdotes that included all the times Israel would "[jokingly] sneak up on her, once while wearing sunglasses on his penis"). For Israel's part, he had pretended to kill himself, incorporating a line from M*A*S*H into his fake suicide note, in an attempt to avoid the prison stay that was coming his way, on account of having taken Bayou Group investors for more than $450 million. At the time, he became something of a minor celebrity, whose business card, prominently featuring an egret, was auctioned off on eBay but since ultimately being sentenced to twenty years behind bars we'd heard nary a peep from the guy. Luckily, Andrew Ross Sorkin recently flew down to Butner, North Carolina for a little chat and it's a good thing he did because Israel had a lot he wanted to get off his chest. After offering ARS an "orange Life Saver," discussing his own version of a playoffs beard ("Mr. Israel...was wearing a tan prison uniform with his hair grown out, a mass of silver and brown curls sprouting from the sides of his bald head. 'I’m never going to cut it until I get out,' he exclaimed"), and talking Ponzi schemes, SI3 got down to the real matter at hand. About halfway through, the interview turned bizarre when Mr. Israel, on the verge of crying, announced: “I took a man’s life. I shot him twice.” I asked for more details. The story is recounted in “Octopus,” but the author, Mr. Lawson, doesn’t appear to believe it. In the supposed slaying, Mr. Israel describes himself defending a known con man, Robert Booth Nichols, who claimed to have once worked for the Central Intelligence Agency and has since died. Mr. Nichols was undertaking a secret trade at a German bank and was ambushed outside by a cockeyed “Middle Eastern guy.” Mr. Israel says he shot the ambusher in the hip and then in the head. He looked at me, shaking, and said, “I’ve seen someone with their head blown off maybe two feet back — as close as I am to you.” Mr. Israel recognized my skepticism. When I asked him what happened to the body, he said, “Bob made a couple of calls.” Again, I looked at him quizzically. “These people can do anything. They can get rid of a body,” he said. “Come on,” he added, looking at me as if I didn’t understand. “They can kill presidents.” I wasn’t sure what he was talking about. “The J.F.K. thing,” he said. He went on to tell me that he had videotapes of Kennedy’s assassination and that one was stolen by the F.B.I. “I know it makes me look like a crackpot,” he said. “But I know it’s real. Look into my eyes — I don’t care if people think I’m crazy.” Egrets. A Con Man Who Lives Between Truth And Fiction [Dealbook]