Ex-NIR Analyst Admits Fraud, Kickbacks

Jul 9 2010 | 1:22pm ET

A former analyst for scandal-plagued hedge fund NIR Group has pleaded guilty to taking kickbacks and fraud, amidst an investigation of his former firm for some of the same crimes.

Daryl Dworkin admitted he lied to Roslyn, N.Y.-based NIR’s investors about the firm’s private investments in public equities funds. He also acknowledged accepting kickbacks from a pair of “corrupt” PIPE dealers. The identities of the co-conspirators were not disclosed.

Dworkin faces up to 30 years in prison on the securities fraud and conspiracy charges.

NIR is currently the subject of a federal fraud and kickbacks probe, although neither the firm nor founder Corey Ribotsky have been charged with any wrongdoing. NIR has also been sued twice in the past two years by investors who say the firm has been making up its returns, which have been positive in 114 of 117 months. Most recently, an investor angered by NIR’s refusal to fill his redemption request accused Ribotsky of providing investors “with valuations of the fund’s securities which are wholly fanciful.” The earlier lawsuit, which was settled earlier this year, alleged that NIR’s returns make “no sense.”

NIR denies any wrongdoing, and jumped on the note that Dworkin “took steps to conceal the kickbacks from NIR’s senior management.”

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…