Philly Hedge Fund Manager Indicted

Nov 9 2007 | 1:41pm ET

The founder of collapsed hedge fund Philadelphia Alternative Asset Management has been charged with defrauding investors of $200 million.

The U.S. attorney in Philadelphia announced the indictment of Canadian Paul Eustace today, alleging he sent investors phony account statements showing profitable investments for four years before authorities shut the hedge fund down. In fact, the fund posted losses of some $179 million; it raised just $230 million. He is also accused of making loans to himself using investor funds, and boosting his management fee based on the non-existent profits. He was charged with two counts of commodities fraud.

PAAM, which regulators shuttered in June, had offices in Canada and King of Prussia, Pa., outside of Philadelphia.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note