In 2009, Niket Jain and Joseph Krigsfeld set up a hedge fund called Aberon Capital Management. Here’s what he says happened next:

Jain paints himself as a victim of a crooked partner who "appeared to have all the trappings of a well-connected Russian Oligarch" and convinced him to form the fund in 2009….

"As a result of Krigsfeld’s trades, the Aberon Funds suffered substantial losses during a time period when the markets were going gangbusters," the suit says. "By October 2012, under Krigsfeld’s control, the Aberon Funds lost over $29 million and Aberon’s [assets under management] fell to less than $500,000."

The SEC seems inclined to agree, to a point, fining and barring Krigsfeld last year. Federal prosecutors, however, have a different, or at least parallel, story to tell.

The charging document also claims Jain lied to the U.S. Securities and Exchange Commission at a January 2018 sit-down at which he was asked about false documents.

The indictment, which does not name the fund, also says an unnamed investor was falsely informed of an $18 million account balance in 2011, when that investor's balance had been in the range of $7 million around that time.

Whatever the case, Jain will be spending a decent chunk of time in Manhattan courtrooms for the foreseeable future.

Jain, 46, appeared before U.S. Magistrate Judge Barbara Moses, who set his bail at $300,000 to be secured by $10,000 of his own cash. Jain faces charges of conspiracy, wire fraud, securities fraud and obstruction, and will be arraigned at a later date before U.S. District Judge P. Kevin Castel....

Krigsfeld and Aberon have asked New York County Judge Andrea Masley to compel arbitration in the civil matter. A Feb. 5 hearing is scheduled.

Aberon Principal Charged With $20M Hedge Fund Scam [Law360]


Invest In God’s Own Hedge Fund

Or God's righthand man, if you will.

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Allegedly Fraudulent Hedge Fund Counters Fraud Allegations With Award Won Through Alleged Fraud

Goldsky Asset Management may have no assets, but it does have hardware.

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Ex-Hedge Fund Manager Better Hope The Next Judge He Sees Doesn’t Think He’s A Thief And A Liar

Because that judge will be the one fulfilling his prophecy about going to jail.


Miami Hedge Fund Manager (Allegedly) Used Investor Funds In Very Miami Way

Never trust a South Florida money manager without an ex-wife and BMW. Or one with them, apparently.

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Former Hedge Fund Manager Self-Fulfills Prison Prophecy

Dan Kamensky may go from predicting jailtime to getting it in less than a year.