Tuesday, 2 September 2014
Last updated 3 days ago
Jun 11 2013 | 10:37am ET
Arrowhead Capital Management founder James Fry's fate is now in the hands of a jury.
The hedge fund manager, who is charged with aiding and abetting the $3.65 billion Thomas Petters Ponzi scheme, lied to investors to win millions of dollars which he then turned over to—and lost with—Petters, prosecutor Kimberly Svendsen said during her closing argument yesterday.
Fry faces 12 counts of fraud and lying to the Securities and Exchange Commission. While prosecutors do not allege that he knew Petters was running a scam, they say he covered up Petters' default on notes owned by Arrowhead, lying to investors and potential investors about them. The government also alleges that he lied to clients about the criminal history of Petters' chief fundraiser, Frank Vennes.
Fry's lawyer, Joe Friedberg, countered that Fry had no ideas that Petters was up to no good.
"His investors knew an awful lot of what he knew, and believed an awful lot of what he believed," Friedberg said.
"We concede that Mr. Fry was negligent as he dealt with Petters—as were hundreds of others," he continued. "But you can't convict on negligence, carelessness or a mistake."
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...