Friday, 29 August 2014
Last updated 16 hours ago
Mar 16 2012 | 7:59am ET
A northern California man was arrested Wednesday and charged with running a phony hedge fund with phony auditors, phony investment claims and even phony principals.
James Murray was charged with wire fraud and remains in custody pending a March 20 detention hearing. According to the Securities and Exchange Commission, which sued Murray alongside the criminal charges, Murray raised $4.5 million for several funds, including a "purported hedge fund," Market Neutral Trading. To keep up the ruse, he offered a "bogus audit report that embellished the financial performance of the fund."
But the audit report wasn't the only thing that was bogus: The auditing firm, according to the SEC, wasn't even an auditing firm, but "a shell company that Murray secretly created and controlled." Even Jones, Moore & Associates' name principals, Richard Jones and Joseph Moore, are made up, according to the regulator, as well as at least five other "professionals" listed on the JMA Web site, which was "paid for by a Murray-controlled entity."
The criminal charges allege that Murray defrauded a credit card processing company, using a merchant account established by the allegedly phony auditor. The scheme cost Chase Paymentech some $350,000, the complaint alleges.
If convicted, Murray faces up to 20 years in prison.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...