NIR's Ribotsky 'Vindicated' By SEC Fraud Charges

Sep 30 2011 | 10:49am ET

Most hedge fund managers wouldn't cheer a Securities and Exchange Commission fraud lawsuit, but NIR Group's Corey Ribotsky is doing just that.

Ribotsky, who was accused this week of misappropriating more than $1 million to pay for luxury cars and other lavish personal expenses, was "vindicated" by the SEC's lawsuit, NIR said in a statement. "There are no claims that NIR fraudulently valued the assets of the funds or that NIR took fees that it was not entitled to take," two of the key allegations made by the investors whose own lawsuits against the Roslyn, N.Y.-based hedge fund precipitated the SEC investigation.

"After years of investigating claims of Ponzi scheming and fraudulent valuation, primarily lodged by two former disgruntled employees who had been terminated for improper conduct, the NIR group and its managing partner, Corey Ribotsky have been vindicated in part by the fact that the Securities and Exchange Commission's long-running investigation failed to make a case in support of these specious claims."

NIR did not explicitly deny the SEC allegations, noting only that they focus on "approximately $1 million against the backdrop of a fund that had in excess of $800 million in total assets in addition to tens of millions of dollars paid to NIR." NIR said it would defend itself in court.

"I think the complaint appears to be a stretch in an attempt to justify approximately two years of time and resources poured into the investigation," Brad Gerstman, Ribotsky's lawyer, said.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.