Sunday, 1 March 2015
Last updated 2 days ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…