Hedge-Fund Fraudsters Sent To Jail In Iraqi Currency Scam

Nov 3 2014 | 9:02am ET

Two Ohio men were sentenced to prison on Thursday for selling investors on fake hedge funds.

Bradford Huebner received more than seven years in prison and Charles Emmenecker ust under three. Both were convicted in May of fraud; Huebner was also found guilty of evading reporting requirements and money laundering.

The two men were accused of defrauding investors into buying $23.8 million in Iraqi dinar. But their scam also included a hedge-fund component, convincing clients to invest $750,000 in hedge funds that didn’t exist.

The two men worked with Rudolph Coenen, who pleaded guilty last year. Their lawyers sought to pin the blame on Coenen, whom Huebner’s lawyer called “the guy who told the lies, and he made them up long before he ever heard of Brad Huebner.”

The judge was not impressed, calling Huebner “a scammer who got scammed himself.” Coenen was sentenced to more than five years in prison in September.

“I will be the first to tell you that I am guilty of trusting people too much—to a fault,” Huebner said. He also insisted that his investors’ bets on the dinar would pay off in the long run.

“You indicated today that you are still excited for all the investors,” U.S. District Judge Jack Zouhary said. “Don’t be excited. Be saddened.”


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of