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

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    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…

Publisher's Note