Tuesday, 21 October 2014
Last updated 32 min ago
Oct 15 2012 | 10:35am ET
MICG Investment Management and founder Jeffrey Martinovich, of Norfolk, Virginia, appeared in court Friday on fraud charges related to the management of his Newport News-based hedge fund.
Martinovich was indicted Wednesday on 26 charges including mail fraud, wire fraud, unlawful monetary transactions and bankruptcy fraud, according to a news release from the U.S. Attorney's Office in the Eastern District of Virginia. He faces a maximum penalty of 20 years in prison for each count if convicted.
Martinovich is accused of having over-valued a non-public security owned by his MICG Venture Strategies hedge fund, then using the higher valuation to overcharge investors hundreds of thousands of dollars in management fees.
The indictment alleges that in both 2007 and 2008, the value of a solar energy company in which the fund had invested was fraudulently inflated to indicate an increase in the overall value of the hedge fund.
According to the indictment, as reported in the Norfolk Pilot, the solar company went bankrupt in February 2010, MICG closed up shop in May that year and Martinovich surrendered his broker's license.
Martinovich and his fund were the targets of litigation by investors looking to recover their money. He filed for bankruptcy in 2011 but, according to the indictment, failed to report thousands of dollars in gambling winnings and losses during those proceedings.
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 McKitish of Peddie School's 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…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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