Staten Island Hedge Fund Fugitive Arrested in Poland

Jun 2 2010 | 10:05am ET

Polish police have finally arrested an American hedge fund fugitive wanted for money laundering and forex fraud.

The U.S. Embassy said today that Polish police arrested Alexsander Efrosman—also known as Alex Besser—in Krakow last weekend.

In 2005, the U.S. Commodity Futures Trading Commission filed charges against Efrosman, alleging that he committed fraud in regards to the sale of foreign currency futures contracts. The regulatory agency also filed charges against two funds that the New York-based hedge fund manager runs, Century Maxim Fund and AJR Capital.

The CFTC alleges that between April 2004 and June 2005 the defendant collected more than $5 million dollars from as many as 110 customers for the purpose of trading managed accounts in forex futures contracts not traded by a registered entity, as is required by law.

Efrosman has a history of fraudulent behavior. In 2000 he was extradited to the U.S. from France where he pleaded guilty to 10 counts of mail and wire fraud in relation to a different forex trading scheme. He was sentenced to three years in prison.

The latest charges allege that immediately after he was released from prison, he started plotting his new scheme.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...