Ex-Broker Settles Hedge Fund Fraud Charges

Jan 15 2008 | 8:22am ET

A former UBS Financial Services broker has settled charges that he helped swindle investors out of millions in a fraudulent hedge fund scam.

The Securities and Exchange Commission says that Justin Paperny worked as a broker for the GLT Venture Fund, telling investors that the hedge fund had access to extremely profitable initial public offerings. But the fund had no such access, and the regulator said it suffered “substantial losses” due to poor trading.

GLT raised $14.1 million from 42 investors; the SEC says Paperny was paid $220,000 for his work from 2002 to 2004.

Paperny will pay to-be-determined disgorgement and civil penalty, the SEC said. He did not admit or deny the charges.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Videos

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    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…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.