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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of