Radio-Host Hedge Fund Manager Ordered To Face SEC Charges

Jun 12 2014 | 9:33am ET

A conservative talk-radio host from Texas must answer allegations that he defrauded investors in his hedge fund with the help of boiler-room operator Anastasios Belesis.

A federal judge in Washington rejected George Jarkesy’s argument that the Securities and Exchange Commission’s administrative process was unfair and that, in settling with Belesis, who in December accepted a one-year ban from the securities industry, it had prejudged him.

“To the extent that the plaintiffs believe their cause has been prejudged by the SEC commissioners, they may seek review, if necessary, before the court of appeals,” U.S. District Judge Beryl Howell wrote, but not before the SEC process had run its course.

The SEC has accused Jarkesy of lying to investors in his John Thomas Capital Management—now known as Patriot28; Belesis’ firm is called John Thomas Financial—about his role as the sole manager of its hedge funds. In fact, the regulator alleges, Jarkesy often abdicated those responsibilities to Belesis, who browbeat and bullied him into paying more in fees and investing in companies that John Thomas Financial had interests in. According to the SEC, Jarkesy’s funds paid Belesis’ firm nearly $5 million for “nearly inconsequential work.”


In Depth

MiFID2 For U.S. Firms: Key Questions Answered

Feb 27 2017 | 4:54pm ET

The January 2018 deadline for implementation of the EU’s mammoth MiFID2 regulations...

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

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of