Friday, 26 December 2014
Last updated 2 days ago
Feb 1 2007 | 12:50pm ET
On Jan. 29, the U.S. District Court for the Northern District of Illinois ordered Sharon Vaughn--the mother of Hollywood actor Vince Vaughn--and her hedge fund, Directors Financial Group, to pay disgorgements and prejudgment interest totaling $808,000 as well as to distribute all of the fund's assets, totaling $22.5 million, to its investors, according to the Securities and Exchange Commission.
The SEC filed a complaint last March alleging that Vaughn defrauded her clients in the by investing in a fraudulent prime-bank trading scheme, contrary to the fund's disclosed trading strategy. Vaughn failed to put on the brakes and perform proper due diligence on the trading scheme or its promoters, and entered into a profit-sharing agreement that ceded 25% of the fund's profits to one of the scheme’s promoters.
Vaughn allegedly gave complete control of the fund's assets to the promoters, which is in violation of the terms of the fund's prospectus, and tried to cover up her fraud by withholding documents from—and providing fake documents to—the SEC’s exam staff.
In addition to the above-mentioned orders and relief previously ordered, the court has ordered Vaughn to pay a $200,000 civil penalty. She consented to the orders without admitting or denying the allegations. The U.S. Attorney's Office for the Northern District of Illinois has also indicted the two promoters associated with the trading scheme.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.