Tuesday, 30 September 2014
Last updated 1 hour ago
Oct 18 2013 | 12:56pm ET
Two former Florida stock brokers are accused of running a hedge fund scam that cost investors more than $4 million.
John DuBrule and Kevin Tuttle recruited clients of Altamonte Springs-based Merrimac Corporate Securities and then lied to them about just-about everything, with falsified account statements, massively overvalued assets, mainly penny stocks, and inflated fees, the Financial Industry Regulatory Authority alleges. According to the agency, the scam ran from 2007 through 2010; DuBrule and Tuttle allegedly misappropriated more than $141,000 in 2008 and 2009 alone, and left their victims with just a fraction of their investments.
DuBrule and Tuttle deny any wrongdoing.
"We will vigorously defend against the claims, and we expect to be vindicated," their lawyer, Russel Forkey, said. Citing the financial crisis, he added, "the documents my clients provided investors clearly spell out the hedge funds' investment strategy and its risk."
FINRA also alleges that Merrimac's leaders, Stephen Pizzuti and David Matthews, knew what their charges were up to and did nothing to stop them. The regulator also charged Pizzuti with a scam of his own, misleadingly promoting his financial-advisory firm to clients.
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…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...