Blue Horizon Founder Hit With Ponzi Scheme Allegations

Jun 3 2014 | 2:33am ET

Chicago hedge fund manager Neal Goyal has been accused of ripping off his investors of more than $11 million as part of a seven-year long Ponzi scheme.

The Securities and Exchange Commission last week filed suit against the Blue Horizon Asset Management and Caldera Advisors founder, alleging that he never invested most of the $11.4 million he raised beginning in 2007. Most of the proceeds, the regulator says, went to pay for Goyal’s lavish lifestyle and to fund his wife’s children’s clothing boutique. What little money he did invest was lost, according to the SEC.

The lawsuit alleges that Goyal began making Ponzi-type payments almost immediately after launching Blue Horizon, attempting to cover his tracks with “fictitious account statements grossly  overstating his performance.”

Goyal’s lawyer, Howard Rosenburg, said he “has been cooperating with the SEC since the beginning of its inquiry and he expects to continue to cooperate.”

The SEC is seeking the return of funds and fines. It won an asset freeze and injunction against Goyal last week.


In Depth

FINalternatives Survey: We Asked Investment Pros...

Apr 2 2016 | 9:42pm ET

The data from our annual reader survey continues to roll in and provide interesting...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...