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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note