Thursday, 25 December 2014
Last updated 15 hours ago
Apr 6 2010 | 9:32am ET
Add Sextant Capital Management founder Otto Spork’s brother-in-law to the list of people accused by Canadian officials of defrauding the hedge fund’s investors.
The Ontario Securities Commission yesterday said Konstantinos Ekonomidis was responsible for marketing the Sextant Strategic Opportunities Fund. He joins Spork, Spork’s daughter Natalie and Robert Levack, Sextant’s former chief compliance officer among those charged with illegal self-dealing and inflating the hedge fund’s returns.
Ekonomidis had “significant and direct involvement in investor relationships for all of the Sextant funds,” the OSC said in a revised statement of allegations. He and the other three charged “all breached their management duties to that fund to the detriment of investors.”
According to the OSC, Sextant inflated the value the Strategic Opportunities fund and two offshore hedge funds by investing in a pair of private companies with rights to develop Icelandic glaciers. The regulator says that 95% of the hedge fund’s assets are invested in the companies, which are themselves almost totally owned by founder Otto Spork and the Sextant funds.
A hearing on the OSC’s allegations is set for May 3. Spork has promised a “vigorous” defense.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
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.