Former Banker Admits Taking Hedge Fund Kickbacks

Aug 3 2007 | 1:58pm ET

A former Banc of America Securities broker admitted to taking kickbacks in exchange for giving a hedge fund access to new securities offerings.

Paul Risoli pleaded guilty yesterday to one count apiece of conspiracy and wire fraud in Manhattan federal court. He is just one of 13 people accused of leaking information to hedge funds in March, he is to be sentenced on Nov. 9.

Prosecutors say Risoli, who left BofA in February, accepted at least $9,500 in kickbacks from Erik Franklin, an analyst at hedge fund Q Capital, from late 2005 through last October. Risoli then allocated shares of both initial public offerings and secondary offerings to Q Capital, which turned at least $160,000 in profit from the deals.

Franklin pleaded guilty to conspiracy, securities fraud and other charges in February.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR