Accused Hedge Fund Fraudster Arrested In Colombia, Indicted In N.Y.

Jan 23 2014 | 11:29am ET

A U.S. Naval Academy graduate defrauded his fellow midshipman as part of a $1.2 million hedge fund fraud, prosecutors said this week.

Bryan Caisse was arrested on Saturday at an airport in Bogotá, Colombia. Prosecutors said he fled the country on a one-way ticket to Colombia after police searched his Manhattan apartment in October; Caisse's lawyer said he was in the country to consult on a resort project.

Caisse pleaded not guilty on Tuesday to 10 counts of grand larceny and one of scheme to defraud in Manhattan state court. Prosecutors said he collected money from friends and former classmates for a hedge fund, but used the money to cover personal expenses, as well as to make Ponzi-style payments to investors.

Caisse's lawyer, Bradley Simon, said his withdrawals from the fund were loans, and told CBS New York his client "intends to repay every penny and more, with interest."

Prosecutors paint a different picture, saying Caisse became evasive when some investors sought to redeem, creating e-mail accounts for fictitious assistants who told clients that Caisse had been seriously injured in a car accident.

"At the heart of every Ponzi scheme is greed and a betrayal of trust," Cyrus Vance, the Manhattan district attorney, said. "This defendant is accused of preying upon those who trusted him."

According to Simon, many of them still trust him, offering to contribute to his bail. Caisse is being held pending payment of that $3 million.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?