Monday, 30 March 2015
Last updated 7 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.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…