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

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note