Thursday, 21 August 2014
Last updated 2 hours ago
Sep 9 2010 | 1:52am ET
The Securities and Exchange Commission has sued a Colorado hedge fund manager for allegedly misleading clients in three funds that lost money in the Bernard Madoff Ponzi scheme.
The regulator did not accuse Neal Greenberg of knowing about or participating in the $65 billion fraud. But it did say that he promised investors in his Agile Group low-risk investments. Many of the firm’s more than 100 clients were retirees.
“Greenberg misrepresented the diversification, risks and fees involved with investing in the Agile hedge funds to conservative investors who were dependent upon their investment income for some or all of their living expenses,” Donald Hoerl of the SEC’s Denver office said. “Greenberg’s unsuitable recommendations and misrepresentations deceived his advisory clients into believing their money was safe with him.”
Agile, which managed $174 million, suspended redemptions in September 2008, telling investors that it had suffered losses in a fraud. Only three months later did clients learn that the losses were linked to Madoff, as well as the Thomas Petters Ponzi scheme.
The SEC also accuses Agile of charging some $2 million in inadequately-disclosed fees.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note