Saturday, 28 March 2015
Last updated 18 hours ago
Sep 27 2007 | 7:38am ET
More than 30 hedge funds in the Northeastern U.S. suspected of a variety of malfeasance, including insider trading, are currently under investigation, a representative of the U.S. Securities and Exchange Commission said at a recent conference in Connecticut.
The regulator is also probing possible insider trading, faulty asset valuation and conflicts of interests, among other potential instances of misconduct, outside of the Northeast.
“Whether you are registered or not, we at the enforcement division believe that we have the tools to detect insider trading,” the SEC’s Bruce Karpati said, referring to the agency’s hedge fund registration requirement, struck down by a federal court last year. “There are obviously active investigations on this front.”
Not just active, but successful, according to hedge fund foe and Connecticut Attorney General Richard Blumenthal. Speaking at the same Connecticut hedge fund conference as Karpati, an assistant regional director of enforcement at the SEC’s New York office, yesterday, Blumenthal added, “There are indications that the investigations will be very productive.”
The Northeast is home to two of the country’s three largest hedge fund centers, New York and southwest Connecticut, and Boston also houses a lot of hedge funds.
In spite of the intensified SEC activity targeting hedge funds—the agency has brought 100 cases against hedge fund managers over the past five years—Blumenthal said he doubts that further federal hedge fund regulation is likely.
“I see no immediate prospect of hedge fund regulations at the federal level,” he said. “I think Congress will be quiescent on this issue.”
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…