N.C. Hedge Fund Manager Hit With 54 Fraud Counts

Mar 24 2010 | 9:47am ET

Things have gone from bad to worse for accused hedge fund fraudster Dennis Hagemann.

The founder of Raleigh, N.C.-based hedge fund Yellowstone Partners saw the number of criminal counts against him increase 18-fold. Hagemann, who was arrested earlier this month on a pair of securities fraud charges and one of obtaining property by false pretense, now faces 54 fraud counts.

Hagemann, who had been free on $250,000 bond, was again arrested yesterday and was being held under a $1 million secured bond.

The new charges are the result of the continuing investigation, North Carolina Secretary of State Elaine Marshall said.

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.

“Our investigators have continued to develop this case as more information from more victims comes in,” Marshall said. “We believe Mr. Hagemann used foreign currency trading as his sales pitch, but then used investors’ money to pay other investors in what essentially became a Ponzi scheme.”


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Controlling With Confidence: A ‘How-To’ For Hedge Fund Managers

Dec 22 2014 | 11:52am ET

Hedge funds are increasingly turning to third party services to help with operations...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

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.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.