Calif. Hedge Fund Manager Arrested

Oct 5 2012 | 1:10pm ET

A California man has been accused of simply stealing more than half-a-million-dollars from a retired teacher.

According to prosecutors and the Securities and Exchange Commission, which filed suit against Hausmann-Alain Banet and his Lion Capital Management in San Francisco, Banet promised to invest the former teacher's $544,000 in his long/short hedge fund. Instead, he invested it in himself, using it to pay his mortgage, office rent and the salaries of Lion's staff members, the SEC alleges.

Banet allegedly kept the ruse going through phony account statements that showed positive returns and pointed to an independent administrator that he had not actually hired.

Banet was arrested on Wednesday and remains in jail, pending a Tuesday bail hearing. He faces charges of wire fraud, mail fraud and money laundering.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of