Sunday, 31 August 2014
Last updated 1 day ago
Nov 10 2011 | 9:59am ET
The Securities and Exchange Commission yesterday sued a pair of hedge fund executives for their alleged roles in the Thomas Petters Ponzi scheme.
The regulator laid charges against Arrowhead Capital Management founder James Fry and the firm's former finance chief, Michelle Palm, as well as the now-defunct Arrowhead. According to the SEC, Fry, who was arrested in July and is facing criminal charges, and Palm, who has already pleaded guilty in the case and is cooperating with prosecutors, helped Petters cover up his fraud by arranging secret note extensions with Petters and by lying to investors about the source of payments that were supposed to come from electronics retailers.
The SEC said that Arrowhead earned $42 million in fees funneling some $600 million in assets to Petters, who was convicted two years ago and sentenced to 50 years in prison for running the $3.65 billion fraud.
"Fry and Palm presented themselves as protectors of their hedge fund investors when in fact they were facilitators of the Petters Ponzi scheme," the head of the SEC's Chicago office, Merri Jo Gillette, said. "Arrowhead's promises were filled with lies and deceit, and as a result investors lost more than $600 million while Fry pocketed millions in fees."
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 ...