Tuesday, 21 October 2014
Last updated 1 hour ago
Jun 18 2013 | 10:01am ET
A North Carolina hedge fund manager has been charged with defrauding investors of $6 million.
James Shepherd was hit with both criminal charges and a Commodity Futures Trading Commission lawsuit. He has struck a plea deal on the former, although his agreement with prosecutors is sealed.
Shepherd ran his fraud for seven years and duped 176 clients, prosecutors said. The scam bears similarities to that run by Peregrine Financial Group's Russell Wasendorf, with Shepherd using a post-office box he controlled to mislead his auditor, telling him it was his bank's address. But when his accountant demanded electronic confirmation of the fund's bank balances, Shepherd refused, and the accountant called the National Futures Association.
Shepherd fooled his clients by sending phony account statements. And while he told investors in December that one fund was managing $6 million, it actually held less than $100,000.
"He definitely wants to pay back people who have lost money," John Keating Wiles, his lawyer, told Reuters.
Shepherd used the stolen money to build himself a $2 million house, among other things.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...