Hedge Fund Manager Fined For Defrauding Clients

Aug 28 2008 | 8:59am ET

Hedge fund manager Mark Boucher has settled a suit with the Securities and Exchange Commission that accused him of misleading investors in his real estate investments.

Boucher, who is also the author of the book “The Hedge Fund Edge,” agreed to pay a $100,000 fine and to refrain from acting as an investment adviser for five years.
 
One other defendant in the case also settled. Gary Johnson, who owns of one of the companies for which Boucher solicited investments, agreed to return $1.8 million in commissions and pay $820,000 in additional fines. A third defendant, John Brake, has not yet settled.

Regulators allege that Boucher, who sends out a monthly newsletter with investment recommendations, told his clients that investments with Johnson’s and Brake’s companies were secured by real estate holdings, and that they had generated $20 million 1999 and 2005. However, one of the firms didn’t even own property, and the other owned one property that was riddled with debt.

Instead of investing his clients’ money, Boucher used the money to pay his mortgage. The other defendants purchased expensive automobiles and rented vacation homes with the money.

"Boucher lured clients into these fraudulent real estate deals by exploiting his reputation as a successful hedge fund manager," said Marc Fagel, director of the SEC's office in San Francisco.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

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

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.