Two More Charged In A.R. Capital Fraud Case

Dec 17 2010 | 12:44am ET

Federal prosecutors have indicted two more men in an alleged $20 million hedge fund fraud case, two weeks after two others pleaded guilty.

William Shternfeld and Benjamin Koifman were charged this week with securities and wire fraud. According to the U.S. Attorney's office, the two men ran the A.R. Capital Global Fund and ARC Global Fund, which raised about $20 million from 70 investors by misleading them.

Earlier this month, A.R. Capital's heads, Igor Levin and Yevegeny Shvartsshteyn, admitted that the firm was a phony and that the money they raised was not invested, as investors were told it would be, in international real estate. Instead, Levin and Shvartsshteyn said, they stole $7 million and sent most of the money to banks in the Ukraine, where it has disappeared.

According to the feds, Shternfeld and Koifman wired some $18 million of the money they collected to the Ukraine.

Both men were freed on $500,000 bail. They are due back in court on Jan. 3. If convicted, they each face up to 65 years in prison.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...