Tuesday, 21 October 2014
Last updated 9 hours 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."
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…
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