Friday, 22 August 2014
Last updated 6 hours ago
Jun 26 2012 | 11:55am ET
When one settles fraud charges with the Securities and Exchange Commission, it's best to keep one's personal spending quiet.
That's advice that hedge fund manager Lawrence Goldfarb allegedly failed to heed. Goldfarb, head of LRG Capital, was held in civil contempt last week by a federal judge in San Francisco; authorities say that Goldfarb spent almost $300,000 on "personal luxury expenses" while paying only $80,000 of the $14.2 million he agreed to pay last year to victims of his alleged fraud.
Among the big-ticket items Goldfarb bought since striking the deal were $43,000 tickets to see basketball's Golden State Warriors. At a hearing last month, U.S. District Judge William Alsup said, "I haven't spend a tenth of that much money in my entire life on sports tickets. This is just a different planet."
Goldfarb also alleged spent more than $46,000 on three chartered flights, some $39,000 on luxury hotels and a vacation house, nearly $12,000 for an engagement party and $8,000 at the Pottery Barn.
"This guy is living high on the hog while the poor, defrauded investors get nothing," Alsup said.
Goldfarb could now face the seizure of his assets and could be charged criminally.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note