Fraud Charges Against Chicago 'Hedge Fund Manager'

May 8 2012 | 10:01am ET

A self-proclaimed "legitimate hedge fund" manager has been charged with being anything but.

A federal grand jury in Chicago last week indicted Dimitry Vishnevetsky on mail, wire and bank fraud charges. Prosecutors said that Vishnevetsky sold a variety of investments through his Hodges Trading and Oxford Capital, including funds "which existed in name only." The scam ran for almost six years as Vishnevetsky collected about $1.7 million from investors, some of whom received Ponzi scheme-payments as Vishnevetsky sought to cover his fraud, prosecutors said.

In addition to the Ponzi payments, Vishnevetsky used the money on himself. The money he actually traded "consistently resulted in net losses, not profits," according to the indictment.

The Commodity Futures Trading Commission filed a parallel lawsuit against Vishnevetsky, Hodges and Oxford.

Vishnevetsky has pledged a vigorous defense.

The allegations in the indictment are "completely false," he told the Chicago Sun-Times. "We're a legitimate hedge fund."


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    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…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.