Saturday, 28 March 2015
Last updated 1 day ago
May 4 2010 | 11:49am ET
A California hedge fund fraudster was sentenced to more than eight years in prison from ripping off investors to the tune of $8.3 million.
Alexander Trabulse pleaded guilty in November to mail fraud. He was accused of using his Fahey Fund as a personal kitty, spending investor money on cars, a home-theater system and an overseas shopping allowance for his ex-wife, all the while boasting to investors about astronomical—and, apparently, fictional—returns of upwards of 200%, according to the Securities and Exchange Commission. He also let his daughter use a debit card linked to one of the fund's bank accounts to buy furniture, airline tickets and to pay for her 2007 honeymoon in Panama.
In 2006, some 165 investors invested $17.6 million in Trabulse’s funds, whose value were inflated to $50 million when, in fact, they were only worth about $12 million.
“Mr. Trabulse lied to fool established investors into keeping their money with him and to trick new investors into investing with him,” prosecutors wrote in a sentencing memorandum. “Those investors were devastated financially and emotionally.”
In addition to his eight-year-and-one-month sentence, U.S. District Judge William Alsup also ordered Trabulse to serve 200 hours of community service and speak to 200 people about his crimes. He was also ordered to pay full restitution.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…