Tuesday, 16 September 2014
Last updated 4 hours ago
Mar 11 2011 | 12:39pm ET
The Financial Industry Regulatory Authority has expelled a defunct hedge fund and its manager for defrauding investors by overvaluing assets.
According to the regulator, MICG Investment Management and founder Jeffrey Martinovich overvalued two non-public securities owned by the MICG Venture Strategies hedge fund, using the higher valuations to overcharge investors hundreds of thousands of dollars in management fees. Martinovich and MICG also induced an elderly, non-accredited investor to invest $75,000 in the hedge fund.
"MICG and Martinovich used the proprietary hedge fund to unjustly enrich itself," FINRA enforcement chief Brad Bennett said. "This extreme abuse of trust, and their disregard for the interests of public investors, demonstrated their unfitness for participation in the industry."
Both Newport News, Va.-based MICG, which tendered its broker-dealer license and shut its doors in May of last year, and Martinovich consented to the FINRA order without admitting or denying guilt.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
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