Wednesday, 27 August 2014
Last updated 34 min ago
Jun 14 2010 | 12:49pm ET
A New York hedge fund manager who claimed royal ties has been arrested and charged with defrauding investors of at least $6 million.
Guy Albert de Chimay was arrested Friday in North Carolina after he was charged with grand larceny and forgery by the Manhattan district attorney. On the same day, the Securities and Exchange Commission filed a fraud lawsuit against Chimay and his Chimay Capital Management.
According to the SEC, Chimay sold investors on his “Bridge Loan Facility” by telling them he would pool their assets with millions from the princely family of Chimay in Belgium, claiming to be related to the Prince of Chimay. Chimay allegedly said the facility would make low-risk, short-term bets, guaranteeing 12% annual returns.
In fact, Chimay spent at least $6 million to pay his divorce lawyers and the mortgage on his house in the Hamptons, according to the SEC. He allegedly falsified bank statements to hide his fraud, and also lied to investors about how much his firm managed, claiming to run $200 million. In December, Chimay allegedly sought a multi-million bank loan by claiming he had $13 million in a Bermudan bank account. According to the SEC, he had exactly $13 million less than that in the account.
“Chimay used the trappings of royalty to perpetrate the most common of frauds,” George Canellos, head of the SEC’s New York office, said. “Chimay blatantly lied to investors about non-existent investments and then used their money to bankroll his exorbitant personal and business debts.”
The SEC won an emergency freeze of Chimay’s assets and those of his firm on Friday.
In addition to the New York criminal charges and the SEC’s lawsuit, Chimay also faces at least three investor lawsuits.
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 ...