Saturday, 20 September 2014
Last updated 1 day ago
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.”
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.