SEC: Accused Hedge Fund Fraudster Stole More Than $1.2M

Feb 25 2011 | 9:10am ET

A Texas hedge fund manager was quite the storyteller, the Securities and Exchange Commission has alleged.

The regulator said that Christopher Blackwell misappropriated more than $1.2 million of the $4 million he raised, spending large sums on himself—including covering his child support payments and funding his fancy for "gentlemen's clubs"—and some $500,000 on Ponzi scheme payments. More money went out in the form of payments to both himself and his associates.

A court has frozen Blackwell's assets, HedgeFund.net reports. The SEC was led to his alleged scam by the Department of Homeland Security, which became concerned by large wire transfers made by Blackwell.

A DHS agent then met with Blackwell in the guise of a potential investor, and the lies continued, according to the SEC. Blackwell allegedly claimed, during a confab at a local Hooters restaurant, that he had studied at the University of Madrid and worked for the Bank of Madrid and Goldman Sachs. None of those claims are true, according to the regulator.

Blackwell allegedly told his victims, including an unidentified former member of the Dallas Cowboys football team, that his hedge fund invested in fixed-income, hedge funds and movie distribution deals.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    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…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

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.