Regulator Raps Norshield Execs. For Misleading Investors

Mar 9 2010 | 9:19am ET

The heads of hedge fund Norshield Asset Management misled investors before it collapsed five years ago, Canadian regulators have ruled.

An Ontario Securities Commission panel has said that former CEO John Xanthoudakis and former President Dale Smith “failed to deal fairly, honestly and in good faith with investors.” The two knowingly used inflated asset values and failed to keep proper books or records after September 2003. The “directing minds” of Norshield also misled investors about where their money was, telling them it was invested in U.S. hedge funds when, in fact, it had been placed with offshore funds.

The OSC also rapped Peter Kefalas, former compliance officer at the hedge fund, for failing to meet his duties.

Investors lost some C$159 million when Norshield failed.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?