Wednesday, 25 November 2015
Last updated 1 hour 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.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…