Monday, 22 September 2014
Last updated 2 days ago
Mar 31 2011 | 2:27am ET
One of three alleged Michigan hedge fund fraudsters has pleaded guilty and turned state’s evidence against his former business partners.
Anthony Rinkus admitted to ripping off investors in the Atlas Fund of $920,000. The money raised from investors—with Rinkus and his alleged co-conspirators promising big short-term returns from investing in distressed, cash-strapped companies—instead went to pay personal expenses, as well as to Ponzi scheme payments to older investors. None of the money raised was legitimately invested, prosecutors say.
“At the time that James Wiederhold, Anthony Rinkus and Joseph Angioi were pitching the Atlas Fund, Wiederhold was fending off collection efforts by creditors from a prior hard-money lending scheme,” Assistant U.S. Attorney Matthew Borgula said. “Wiederhold owed hundreds of thousands of dollars to former investors, who like the investors in the Atlas Fund, were led to believe by Wiederhold that he would invest their money in hard-money lending, or other investments. As with the Atlas Fund, Wiederhold never invested any of their money in any legitimate investment.
Rinkus pleaded guilty to wire fraud. He faces up to 20 years in prison when he is sentenced in June.
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.