Ill. Hedge Fund Manager Fined For Fraud

Dec 2 2011 | 9:07am ET

A Chicago-area hedge fund has settled Securities and Exchange Commission charges that it lied to investors about its assets, returns and investments.

Paridon Capital Management and owner Jeffrey Neufeld, beginning in 2006, inflated the returns of their TCM Global Strategy Fund, as well as inflating their assets under management, in an effort to lure more investors into the fraud. What's more, much of the fund's money went to buying debt securities—not permissible investments for the fund, according to the SEC—which were not, in fact, debt securities at all, but a loan to Elgin, Ill.-based Paridon itself, the SEC complaint alleged.

And if that were not enough, Paridon then marked up those loans to hide other trading losses. Neufeld and Paridon, who earlier this year paid $53,000 to an "injured investor," did not admit or deny wrongdoing, although Neufeld agreed to pay a $75,000 fine.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

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

October 2014 Cover

The yield curve and stock market response

Traders form habits quickly. Understanding these and their effects can better equip us to decipher actual market moves.

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.