Monday, 1 September 2014
Last updated 3 days ago
Apr 25 2011 | 12:36pm ET
Two hedge fund managers indicted last week in the Thomas Petters Ponzi scheme case have pleaded guilty to lying to investors about the fraud.
David Harrold and Bruce Prevost, principals of Palm Beach Capital Management, entered their pleas on Thursday, just a day after their indictment. Each man faces up to 20 years in prison when they are sentenced.
According to prosecutors and the SEC, which sued the two men and their hedge fund in October, Palm Beach swapped old promissory notes it bought from Petters for new ones, hiding the exchanges from investors. Palm Beach's assets made up more than $1 billion of the $3.65 billion invested in the Petters Ponzi scheme.
The pleas from Harrold and Prevost come less than a week after another hedge fund executive, Michelle Palm of Arrowhead Capital Management, also pleaded guilty to misleading investors about the fund's relationship with Petters. All told, nine people have pleaded guilty in the case, including Gregory Bell and Harold Katz of hedge fund Lancelot Investment Management.
Petters himself was convicted by a jury and sentenced to 50 years in prison.
A third man indicted alongside Harrold and Prevost, former Petters associate Frank Vennes, has not entered his plea.
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…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...