Tuesday, 23 September 2014
Last updated 11 hours ago
Apr 17 2012 | 12:31pm ET
The Securities and Exchange Commission has put an end to what it calls a hedge fund Ponzi scheme targeting Persian Jews in California.
The regulator on Friday won an emergency order pulling the plug on Neman Financial. Shervin Neman allegedly raised more than $7.5 million for that "hedge fund," but spent the money either on himself or on Ponzi-style payments to earlier investors.
"Neman deceived members of his own community to raise money in this fraudulent Ponzi scheme," Michele Wein Layne of the SEC's Los Angeles office said. "By exploiting investors' trust in him, Neman was continually able to raise more money to pay back existing investors and finance an extravagant lifestyle."
According to the SEC, Neman spent almost $1.6 million of investors' money on the latter, including to pay for jewelry, cars, tickets to sports games, vacations, his wedding and his honeymoon. In total, more than 99% of the money raised went towards those expenses or the Ponzi payments, the complaint alleges.
It wasn't supposed to be this way: Neman told his investors, at least 11, all members of the Persian-Jewish community in L.A., that Neman Financial invested in foreclosed residential properties and on private investments in hot pre-initial public offering companies, including Facebook, Groupon, LinkedIn and Angie's List.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.