Wednesday, 1 April 2015
Last updated 2 hours ago
Sep 6 2013 | 4:08am ET
A number of hedge funds—including Platinum Partners—were targets of a $278 million Ponzi scheme.
Four men have been charged with attempting to bilk the hedge funds by misleading them about the value of medical accounts receivable that they had purchased for a fraction of a penny on the dollar. The scam ran from 2007 through 2010.
Two of the men—Robert Feldman and Douglas Kuber—have already pleaded guilty to conspiracy charges. The other two, Jonathan Rosenberg and Richard Shusterman, were arrested this week.
The indictment alleges that Rosenberg and Kuber ran a company called Account Receivable Services, which bought the medical accounts receivable from International Portfolio Inc., headed by Shusterman and Feldman. The men then securitized the holdings, lying about their purchase prices, collection results and resale values to lure investors. In an effort to lure another hedge fund--Eton Park--the men allegedly told that fund that a Platinum-financed portfolio had received more than 10 times the collections it actually garnered. Eton Park did not end up investing in the scheme.
For their troubles, Kuber and Rosenberg allegedly received kickbacks from Shusterman totaling $8.3 million.
Shusterman and Rosenberg face up 200 years in prison on the conspiracy and wire fraud counts. Feldman and Kuber face up to 20 years in prison when they are sentenced.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…