Monday, 22 December 2014
Last updated 1 hour ago
Dec 11 2007 | 9:32am ET
If you’re planning to involve a hedge fund manager in a kickback scheme, it’s probably best to make sure he’s actually a hedge fund manager.
A Federal Bureau of Investigation agent posing as the head of a West Palm Beach, Fla.-based hedge fund called Fillmore Capital nabbed 10 insiders and promoters of publicly-traded companies in five kickback schemes in exchange for securities sales. The Securities and Exchange Commission charged 10 individuals, while the U.S. Attorney’s office in Miami slapped six on them with criminal charges.
According to the SEC, in each case the FBI-agent-cum-phony-hedge-fund-manager told each mark that the kickback had to be kept secret because it violated his fiduciary obligations to the non-existent hedge fund and that he had set up a phony consulting company to accept the kickbacks. All, save one, actually paid the kickback.
“This case illustrates the Commission’s ability to work together with criminal authorities in creative ways to uncover fraudulent schemes and to protect our markets,” Linda Chatman Thomas, the head of the SEC’s enforcement division, said.
Some of the individuals hit by SEC charges include Vincent Cammarate and Rex Morden of Affinity Financial Group, William Haynes—who had already been enjoined from violating antifraud laws under an earlier $7 million offering fraud case—and Efrim Gjonbalaj of Real Asset Management, Mark Foglia of Western Financial Services, Virgil Williams, and Sean Sheehan.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.