Thursday, 5 March 2015
Last updated 14 min ago
May 2 2013 | 9:40am ET
A North Carolina hedge fund manager will plead guilty to misleading investors about almost $9 million in losses.
Stephen Maiden struck a plea deal with federal prosecutors, who accused the Maiden Capital Opportunity Fund manager of sending clients and its administrator "bogus account statements." Maiden suffered substantial losses between 2006 and 2009, but still reported positive returns to investors. In April 2009, Maiden claimed a monthly net return of 4.9% and a 30-month net return of 47%—in fact, prosecutors said, he had lost most of the money invested with him.
Maiden also made Ponzi scheme payments to some investors, sometimes using personal funds. Maiden Capital was insolvent by July of last year; Maiden signed the plea agreement in October.
Maiden, a former investment banker at JPMorgan Chase and analyst at Mangan & McColl Partners, faces up to 20 years in prison.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…