Tuesday, 31 March 2015
Last updated 16 hours ago
Dec 3 2013 | 10:41am ET
As another hedge fund insider-trading trial grinds on, there's an ominous warning to the private-equity industry from the legal: Your turn is coming.
U.S. regulators, having won dozens of convictions for hedge fund fraud in recent years, are turning their attention towards private equity, law firms working with buyout firms tell the Financial Times. And while the crimes may differ—insider trading, for one, requires dealing in publicly-traded securities—the tactics will likely be recognizable.
Former Securities and Exchange Commission lawyer John Carney, now at law firm BakerHostetler, notes that SEC Chairman Mary Jo White "has filled her enforcement ranks with a number of her former lieutenants" from when she was a federal prosecutor, men and women itching to use some of the new methods that have sent the likes of Raj Rajaratnam to prison.
"These proven investigatory techniques and the young generation of prosecutors looking to make a name for themselves look like a volatile combination," Timothy Spangler of Sidley Austin told the FT. And, he warns ominously, "private-equity investigations are at the stage where hedge funds were five years ago."
"These tools were hallmarks of mafia investigations, and they have proven very effective in hedge fund investigations," Spangler continued. "There is no limit to how these investigations could be replicated across other areas of financial services."
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…