Atlanta Man Accused Of Hedge Fund Scam

Jul 5 2011 | 12:47pm ET

An allegedly phony hedge fund manager is facing jail after he was charged with running a $7 million Ponzi scheme.

Charles Vaughn promised returns of up to 50% per year, prosecutors allege, winning the money from at least 25 people. But, according to the complaint, he spent the money on himself and on paying out redemptions to other investors in his CM Vaughn fund.

The Atlanta man recruited investors in Georgia, Florida, Michigan, North Carolina and Tennessee, guaranteeing returns of between 2% and 3.5% each month. The scam ran from July 2004 though at least March 2008, according to the U.S. Attorney's office.

Vaughn faces decades on prison on the five wire fraud and nine mail fraud counts.

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    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…