Monday, 20 October 2014
Last updated 2 days ago
May 21 2010 | 10:00am ET
Ten days ago, brokerage MICG Investment Management went out of business. But it may now have an even bigger problem, as the firm and its CEO have been charged with running a hedge fund fraud.
The Financial Industry Regulatory Authority alleges that the Newport News, Va.-based firm lied to clients and misappropriated money invested in its MICG Venture Strategies hedge fund. The regulator said that MICG and Jeffrey Martinovich, its CEO and manager of the hedge fund, fudged the values of two stocks owned by the fund in order to reap larger fees.
Martinovich also allegedly recruited an elderly investor to pour $75,000 into the fund. The only problem, according to FINRA, is that the investor wasn’t accredited to invest in hedge funds.
Martinovich and MICG have denied FINRA’s allegations.
FINRA is seeking fines and disgorgement of ill-gotten gains.
MICG gave up its broker-dealer licenses and closed its doors on May 12.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...