Pretending A P.O. Box Is Your Bank Isn't Working Anymore

Author:
Updated:
Original:

Take heed, evil-doers: The Feds (and your accountant) are on to the whole "get yourself a P.O. box and tell your service providers it's the bank's" con.

A North Carolina hedge fund manager used a personal post-office box and forged bank statements to hide his theft of about $6 million over a seven-year period, U.S. regulators and prosecutors said on Monday.

James Shepherd, who ran a commodity fund that traded contracts at CME Group Inc and IntercontinentalExchange Inc , was charged with the fraud in federal court in Charlotte on Monday. In a related action, the Commodity Futures Trading Commission sued Shepherd for fraud and misuse of customer funds.

The charges were reminiscent of a larger scam uncovered last year that was perpetrated by Russell Wasendorf Sr., the founder of Peregrine Financial Group. He used similar tools to steal $215 million from clients over nearly 20 years….

The complaints filed on Monday against Shepherd revealed new details about his fraud, including the use of a personal post-office box that he told his auditor and regulator was the property of his bank. Shepherd spent some of the misappropriated money to build a $2 million home in Vass, North Carolina, U.S. prosecutors said.

Shepherd's fraud unraveled in March after his accountant insisted the fund's bank balances be confirmed electronically through a website called Confirmation.com. Shepherd refused and the accountant alerted NFA.

Hedge fund manager used postal box to hide $6 million fraud, Feds say [Reuters via Fox Business]

Related