Friday, 29 August 2014
Last updated 6 hours ago
Jun 12 2013 | 9:52am ET
Accused hedge fund fraudster Michael Balboa has gone on trial in New York.
Balboa, who was based in London, faces conspiracy, securities fraud, wire fraud and investment advisors fraud. According to prosecutors, Balboa invested in illiquid bonds, some in Nigeria and Uruguay, which he and two brokers then inflated in value. Those bogus values were then hidden from Millennium Global Investments' independent auditor and trumpeted to Millennium's clients in monthly newsletters. The fund, which claimed to manage US$844 million, collapsed in 2008; Balboa was paid 40% of the fees the fund earned, which amounted to some US$6.5 million.
The two brokers were not charged criminally, although one, Gilles De Charsonville, was sued by the Securities and Exchange Commission.
Millennium Global liquidated Balboa's fund during the financial crisis, costing investors some $1 billion.
Balboa faces up to 20 years in prison if convicted of securities fraud.
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 ...