Tuesday, 30 September 2014
Last updated 2 hours 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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
The trading world is inundated with strategies and techniques. Here’s one way traders can get a handle on information overload.