Wednesday, 1 October 2014
Last updated 6 hours ago
Sep 13 2010 | 11:15am ET
Two former hedge fund executives have pleaded guilty to running a phony tax shelter scam.
Jeffrey Greenstein, the former CEO of Quellos Group, and Charles Wilk, a principal and tax attorney at the firm, struck a plea deal with prosecutors on Friday. The two men, who had pleaded not guilty to running the $9.6 billion scam last year, will pay $7 million to the Internal Revenue Service and serve between two and six years in prison for conspiracy and assisting with the filing of a false tax returns.
The Quellos tax shelter shielded clients from paying some $240 million in taxes, the U.S. Attorney in Seattle said. The POINT program allegedly offered clients stock that had depreciated in value in order to offset large capital gains, but prosecutors say those shares never existed. The indictment against the two men said Quellos earned some $136 million through the tax-shelter program.
Greenstein and Wilk are to be sentenced in January. In addition to the IRS penalties and jailtime, the two men have agreed to speak about business and legal ethics at their respective graduate schools.
BlackRock bought the fund of hedge funds business of Quellos in 2007.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...