UPDATE: ‘Christian’ Hedge Fund Fraudster Denied Bail

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.


‘Christians In Crisis’ Hedge Fund Manager Arrested For Fraud

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...