Calif. Hedge Fund Manager Settles Charges He Hid Losses

Dec 2 2010 | 1:58pm ET

The son of a retired Silicon Valley executive has settled allegations that he defrauded investors in his hedge fund.

Neil Godbole will pay a $40,000 fine and has been barred from the industry for five years, the Securities and Exchange Commission said. The regulator had sued Godbole, accusing him of systematically misleading investors to hide some $14.5 million in losses suffered by his Opulent Lite fund.

Saratoga, Calif.-based Opulent Lite raised some $30 million from 70 investors through the beginning of 2008. But in February of that year, the SEC said he began hiding losses by sending false account statements. He even understated his gains—when he made them—in an effort to make up for those losses, according to the SEC order.

A year after first misstating returns, Godbole, the son of Navin Communications co-founder Vishwas Godbole, admitted his "rollover" strategy to investors. Opulent Lite closed its doors in March 2009.

"Neil cooperated fully with the SEC and is pleased to put the SEC matter behind him," his lawyer, Jahan Raissi, said. Godbole did not admit or deny wrongdoing.

While his SEC troubles may be behind him, Godbole is still facing a raft of lawsuits filed by about 50 of his 70 investors.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.