Report: Alleged ICP Fraud Aimed To Protect Hedge Fund Moore Capital

Jun 28 2010 | 7:31am ET

Moore Capital Management has been identified as the ICP Asset Management client that was supposed to benefit by the latter firm’s alleged fraud, as a second ICP employee has been sued by regulators.

New York-based ICP and owner Thomas Priore were accused last week of directing more than $1 billion in trades for four collateralized debt obligations it managed at inflated prices. According to the Securities and Exchange Commission, the firm did so to protect both ICP and “an important client.” That client, named Client A in the lawsuit, was Moore Capital, according to both Bloomberg News and The Wall Street Journal. However, the lawsuit states that instead gaining from the trades, Client A actually suffered over $200 million in losses.

New York-based hedge fund Moore Capital has not been accused of any wrongdoing.

The SEC on Friday added Aamer Abdullah, the former head of ICP’s asset-backed and mortgage-backed securities desk, to its lawsuit against ICP and Priore. The regulator accused Abdullah of defrauding the Triaxx CDOs by selling them at an inflated price. Abdullah also allegedly took part in at least one swap designed to turn a profit at the CDOs’ expense.

Abdullah left ICP in April. 

Priore has denied all of the charges.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.