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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of