Four Charged In Black Diamond Hedge Fund Fraud

Feb 24 2012 | 4:32am ET

Four more people have been indicted in the Black Diamond Capital Solutions hedge fund case.

A federal grand jury in Charlotte, N.C., returned the indictment against Jonathan Davey, Michael Murphy, Chad Sloat and Jeffrey Toft, the U.S. Attorney's Office in that city said. The new round of indictments brings to 11 the number of people charged in the case; six of the previous seven have pleaded guilty and the seventh, Black Diamond founder Keith Simmons, was convicted of fraud and money laundering a year ago.

In addition, CommunityONE Bank struck a deferred prosecution agreement for its failure to catch Simmons' money laundering.

According to prosecutors, the four newly-indicted men ran phony hedge funds as part of the $40 million Black Diamond scam. The indictment alleges that from October 2007 through April 2010, the four and their co-conspirators lied to investors and ran a Ponzi scheme to keep the fraud afloat.

In addition to the fraud charges, Davey has been charged with tax evasion.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR