Saturday, 30 August 2014
Last updated 1 day ago
Mar 26 2010 | 4:05am ET
A Colorado hedge fund fraudster has pleaded guilty to charges that he ripped clients off to the tune of $2.1 million.
Cary Kahn entered his plea to one charge of mail fraud on Wednesday. He admitted that he told clients his Double Eagle Fund was earning double-digits returns, but in fact spent much of the money he raised satisfying his vices.
Kahn told U.S. District Judge Wiley Daniel in Denver that he sent investors phony account statements touting big returns. But he admitted that the fund never had “a legitimate purpose or existence.”
Instead, he spent the money raised from 14 clients between 2002 and last year on alcohol, marijuana and gambling. Asked by the judge what his drink of choice was, Kahn answered, “vodka.” The fraudster said he also spent investor money to pay his own living expenses.
He also admitted that he hid a 2004 action against him by the Securities and Exchange Commission for market manipulation, and that he had never repayed the $12,000 in illicit profits he earned doing so.
“I took advantage of other people,” he said. “I dug a hole. Things were getting worse and I was trying to make them better, and things kind of cannon-balled.”
Kahn faces up to 12-and-a-half years in prison when he is sentenced on June 28.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...