Friday, 30 January 2015
Last updated 2 hours ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…