Wednesday, 22 October 2014
Last updated 11 hours ago
Nov 22 2013 | 10:11am ET
NIR Group founder Corey Ribotsky has agreed to pay more than $14 million to end the Securities and Exchange Commission's lawsuit against him.
The SEC said that a federal judge in Brooklyn, N.Y., entered a final judgment against Ribotsky last week, and that Ribotsky consented to it without admitting or denying wrongdoing. In addition to paying $14.5 million in disgorgement, prejudgment interest and fines, Ribotsky has been barred from the securities industry.
The regulator dropped its claims against NIR, because the firm is defunct and has no assets.
The SEC sued Ribotsky more than two years ago, accusing him of misappropriating more than $1 million to fund a lavish lifestyle. The charges, which came after years of rumors, allegations and investigations, alleged that Ribotsky made a habit of lying to investors about the performance of his hedge funds and their liquidity, and that he began stealing from one of the funds as far back as 2004. Ribotsky also allegedly made Ponzi scheme payments to several investors.
The complaint did not allege, as several NIR investors have, that Ribotsky fraudulently valued assets.
Ribotsky was fired by NIR's court-appointed liquidator early last year. At the time the lawsuit was filed, he characterized it as a "vindication" because it included "no claims that NIR fraudulently valued the assets of the funds or that NIR took fees that it was not entitled to take."
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...