Monday, 30 March 2015
Last updated 3 hours ago
Mar 5 2008 | 1:00am ET
A Utah hedge fund firm and its trio of principals have been charged with defrauding investors of $60 million.
The Securities and Exchange Commission said that Salt Lake City-based Thompson Consulting misled investors about the nature of its investments and misappropriated funds. The regulator also charged principals Kyle Thompson, David Condie and Sherman Warner, alleging that each made sales pitches to potential investors, including many elderly.
According to the SEC, Thompson Consulting in March of last year began to ratchet up the risk in its portfolio—without informing investors—as it struggled to meet its promised 36% annual return. But its efforts only made matters worse: The firm wrote options on New Century Financial Corp. stock, only to see New Century’s share price collapse amid the subprime squeeze. Thompson Consulting then poured what was left of its assets into unhedged options on the Chicago Board Options Exchange’s volatility index just in time for the market collapse in August.
The fund lost more than $50 million in the first two-and-a-half weeks of August, leaving it with just $200,000.
The SEC also alleges that Thompson Consulting transferred $3 million of the hedge fund’s assets to an individual client’s account, to cover up losses suffered on the New Century options.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…