Hedge Fund’s Main ‘Humanitarian Cause’ Was Paying Founder’s Bills

Was that wrong? Should they not have done that?
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True believers.

D. Christopher Capital Management Group founder Delsa Thomas told the churches investing with her that “nonprofit and ministry project funding” was close to her heart, and that her firm was dedicated to “providing support to humanitarian causes.” Unfortunately for those churches, that support came primarily in the form of Ponzi scheme payments, according to prosecutors. That is, after charity case numero uno got hers.

Federal authorities say the Dallas woman defrauded multiple investors in the U.S. and in Canada, including retirees, out of about $2 million while she worked for Morgan Stanley Smith Barney as well as her own firms….

She lost their money in “reckless payments to other shadowy companies” and through Ponzi payments to other investors, court records show. She also spent at least $290,000 of the investment money on herself, her friends and relatives, federal authorities said.

(Allegedly) terrible, to be sure. But it might be said that her own church might have known better than to double down with Thomas.

The SEC complaint said that while still employed at Morgan Stanley (NYSE: MS), Thomas persuaded officials at her church to invest $405,000 with her. All of the money was lost, and Morgan Stanley warned Thomas in December 2010 that she would be fired if her performance didn’t improve….

Her church later invested $420,000 with D. Christopher Capital for a “supposed bond transaction involving trading on European and Hong Kong markets,” the SEC said.

Dallas woman accused of defrauding her own Irving church [Dallas Morning News]

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