Saturday, 20 September 2014
Last updated 16 hours ago
Nov 21 2013 | 10:47am ET
Federal prosecutors have hit former hedge fund manager Stanley Kowalewski with a lengthy criminal indictment, nearly three years after his alleged fraud first reached the courts in the form of a Securities and Exchange Commission lawsuit.
Kowalewski, who was arrested in South Carolina, faces 22 counts of wire fraud, conspiracy to defraud the U.S. and obstruction of an SEC investigation. If convicted, he faces centuries in prison.
According to federal prosecutors in Atlanta, Kowalewski stole some $8 million from investors in his SJK Investment Management, "diverting millions of dollars from that fund to himself and his personal interests through various self-dealing transactions."
The SEC sued Kowalewski for much the same at the beginning of 2011, eventually winning a $16.8 million fine against him. Even after the regulator sued him, Kowalewski couldn't seem to remain out of trouble, with the SEC complaining repeatedly that he was violating the asset freeze against him.
“Kowalewski is charged with stealing from the investors who trusted him and then repeatedly lying to them and the SEC about his self-dealing,” Sally Quillian Yates, the U.S. Attorney in Atlanta, said. “The victims of his greed include pension funds, schools, hospitals, and other non-profits who lost over $8 million in hard-earned money, which Kowalewski diverted to his own personal use.”
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.