Thursday, 21 August 2014
Last updated 24 min ago
Feb 13 2013 | 12:06pm ET
An Ohio man has been convicted of running or participating in two hedge fund frauds.
Jonathan Davey was found guilty of conspiracy and tax evasion by a federal jury in Charlotte, N.C. According to prosecutors, he both served as a phony administrator to the Black Diamond Capital Solutions hedge fund, a $40 million scam in which Davey is the 11th person convicted, as well as a hedge fund fraud of his own. Davey collected more than $11 million for his Divine Circulation Services hedge fund, using his ties to Black Diamond to lure victims.
It took the jury just 45 minutes to convict Davey, who now faces up to 50 years in prison and $1 million in fines.
Davey was charged in the Black Diamond Ponzi scheme last February alongside three others, all of whom have since pleaded guilty. He was only the second of the 11 defendants in the case to go to trial; Black Diamond founder Keith Simmons was convicted in 2011 and sentenced to 50 years in prison.
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