Saturday, 1 November 2014
Last updated 20 hours ago
Sep 24 2013 | 9:43am ET
A U.S. hedge fund manager who pleaded guilty in the K1 Group fraud has been sent to prison for his role in defrauding investors of more than $300 million.
John Tausche was sentenced to four-and-a-half years in prison and ordered to pay $115 million in restitution to Barclays, one of the largest victims of K1 founder Helmut Kiener's scam.
Tausche ran the Wichita, Kan.-based Oceanus Funds. Prosecutors say that Kiener used those vehicles for a series of roundtrip payments that made it appear that K1 was growing, when in fact Oceanus was simply returning money that K1 had sent it. Tausche also gave both Barclays and Bear Stearns false financial information, leading the to banks to offer K1 more than $200 million in financing.
Tausche's cut from the fraud was about $114 million, prosecutors said. He cooperated in the investigation.
Kiener was convicted in 2011 and sentenced to nearly 11 years in prison in Germany.
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…
Traders form habits quickly. Understanding these and their effects can better equip us to decipher actual market moves.