North Carolina Hedgie Charged In Ponzi Scheme

Mar 17 2010 | 1:26pm ET

A North Carolina hedge fund manager has been accused of defrauding investors of hundreds of thousands of dollars in what regulators call an “out and out scam.”

Dennis Hagemann was arrested and charged last week with securities fraud and obtaining property by false pretense. According to prosecutors, his Yellowstone Partners hedge fund was nothing more than a Ponzi scheme that netted some $700,000 from at least nine investors.

Hagemann allegedly told clients Yellowstone invested in currencies, producing gains of 100% to 300%. But he actually pocketed the money, prosecutors said.

“Folks, that is just out and out scam territory,” North Carolina Secretary of State Elaine Marshall said of the triple-digit promises. “You ought to just grab your pocketbook and run.”

Hagemann, who was released on $250,000 bond, also faces civil charges filed by the Commodity Futures Trading Commission.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...