Saturday, 30 August 2014
Last updated 23 hours ago
Apr 21 2010 | 2:21am ET
A New Jersey hedge fund manager has been arrested for allegedly defrauding investors of $1.6 million.
Robert Sucarato’s New York Financial Co. was little more than a pack of lies, prosecutors say. He was arrested on Friday and charged with wire fraud and fraud by a commodity pool operator. He remains jailed pending a Friday bail hearing.
Authorities say that Robert Sucarato lied about just about everything to investors: how much money he was managing, his returns, his education and his firm’s offices. All told, he attracted some $1.7 million to his New York Financial Co., stealing some $494,000, losing $850,000 and using the rest to prop up the Ponzi scheme, according to the Securities and Exchange Commission, which sued him last year.
At a time when Sucarato was claiming to manage $7.2 billion, his brokerage accounts had just $110,000 in them, according to the SEC complaint. He also allegedly forged accounting statements to show more than $600 million in assets in 2004 and more than $800 million in 2005.
As befits any would-be Ponzi schemer, Sucarato also lied about NYFC’s returns, the SEC said, claiming they ranged from 26.5% to 48.2%. In fact, the SEC said, “Sucarato consistently experienced net trading losses, which totaled approximately $850,000.”
The regulator said he also lied about his education, claiming to have graduated from New York University. He also “embellished biographies” of the firm’s other executives “to create an illusion of stability, longevity and expertise,” the SEC alleges, and claimed “that over 20 experienced traders and additional support staff worked for the company.” None did, the SEC said. Nor did the firm actually have the New York and Chicago offices it claimed, only “virtual” offices with mailboxes and shared receptionists.
If convicted, Sucarato could face up to 20 years in prison.
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 ...