Tuesday, 23 September 2014
Last updated 2 hours ago
Aug 13 2014 | 10:42am ET
A Bahamian brokerage firm stands accused of helping a Bernard Madoff feeder fund manager hide losses from investors.
The Securities and Exchange Commission has sued Alliance Investment Management and its president, Julian Brown, alleging that they assured Nikolai Battoo’s investors that Alliance served as custodian for Battoo’s hedge funds, when they in fact did not have custody of most of the assets. They also allegedly allowed him to create phony account statements on Alliance letterhead overstating assets by more than $150 million, and allowed Battoo to misappropriate $45 million in investor capital—$5 million of which allegedly went to Alliance and Brown.
“We allege that Brown and his firm enabled Battoo’s scheme by providing investors with false assurances about who was holding their money and how much money they had in their accounts,” Timothy Warren of the SEC’s Chicago office said.
The Alliance suit comes nearly two years after the SEC and Commodity Futures Trading Commission sued Battoo for hiding losses—including those suffered in the Madoff Ponzi scheme—from investors. The regulators said Battoo then used the collapse of MF Global Holdings as an excuse to stop paying out redemptions.
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 McKitich, CIO of Petty 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…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.