Monday, 22 December 2014
Last updated 17 hours ago
Mar 4 2008 | 1:16am ET
Steve Wilson, the California man charged with defrauding investors of more than $5 million in a hedge fund Ponzi scheme, has been denied bail.
A federal magistrate denied Wilson’s application for bail following his arrest on Sunday, agreeing that he is a flight risk.
“Wilson is facing 20 years in prison,” Robert Lapham, U.S. Attorney for the Eastern District of California, said. “He’s also got the prospect of lawsuits from 70” of his alleged victims.
According to an affidavit in support of the federal complaint, Wilson’s hedge fund, variously known as the Christians in Crisis Investment Fund, Shake the Nations and Opus Capital Holdings, collected some $9 million in investments, promising 24% annual returns in exchange for a one-year lockup period.
In fact, according to authorities, Wilson used about $2 million of the money raised between March 2006 and July 2007 to pay off investors. Of the remaining balance, he allegedly lost $5.1 million in trading on the fund’s Ameritrade brokerage account, and used $1.1 million for personal expenses, including a Porsche and pleasure boat.
Authorities say Wilson—a.k.a. Stefan Andre Wilson—changed his name to hide a fraud conviction and bankruptcy filing, and convinced some of his investors to refinance their homes in order to invest in his fund.
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.