Pair Hit With Hedge Fund Fraud Charges

Jan 28 2008 | 11:33am ET

A federal judge has frozen the assets of a group of hedge funds and related entities after the Securities and Exchange Commission filed a fraud complaint against two people and six entities they allegedly control.

According to the SEC, James Jeffery and Thomas Repke, along with Coadum Advisors, Mansell Capital Partners and a slew of funds and related companies, were used to defraud investors in a series of four securities offerings, two of which are ongoing. The complaint alleges that investors were promised returns of 3% to 6% per month in principal-protected investments, in which the principal would remain in an escrow account.

The SEC says the group actually transferred the funds to Exodus Equities in Malta, investing most of the US$30 million raised in Exodus Platinum Genesis Fund, a Bermuda-based hedge fund that is not yet actually operating, and in supposed “pre-REIT convertible bonds.”

In addition, Coadum and Mansell allegedly borrowed some US$3 million from or secured against the investors’ funds, and disbursed another US$5 million to related parties.

Judge Orinda Evans of the Northern District of Georgia last week imposed a temporary restraining order on Jeffery, who lives in Ontario, Canada and Repke, who lives in Holladay, Utah, as well as Coadum and Marshall. In addition to freezing the funds, demanding an accounting of them and forbidding the four from further securities law violations, Evans also appointed a receiver.


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

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

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.