Friday, 1 August 2014
Last updated 14 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…