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

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

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.