Wednesday, 6 May 2015
Last updated 16 hours ago
Oct 3 2008 | 12:53pm ET
The Securities and Exchange Commission has filed suit against David Myatt and William Eichengreen, charging them with fraud involving a now-defunct hedge fund, Directors Performance Fund.
The SEC alleges that Myatt defrauded the fund by convincing Directors Financial Group—the fund's investment adviser and managing member—to invest $25 million in a “prime bank” scheme. Myatt allegedly claimed that he was an associate with American Trade Industries, which purportedly held over $60 million in assets used to “assist the global financial markets and social well-being of others.” ATI's president, Richard Warren, allegedly ran a trading program that transacted in unidentified discounted fixed-income instruments. The ATI Program was promoted to earn a return in excess of 10% per month with no risk to invested principal.
Myatt also said trading for the ATI Program occurred on a secret market overseen by “the Fed” whereby Warren was one of the few traders licensed by “the Fed” to trade on that secret market.
Actually, the ATI Program was a sham and no trades ever took place and no profits were ever generated.
According to the SEC, the fund's chief compliance officer, William Eichengreen, defrauded the fund by falsifying its financial statements allowing the firm to take profit-based fees to which it was not entitled. He also defrauded prospective investors by consistently misrepresenting the fund's trading strategy, investments, and performance.
The SEC seeks an order requiring Eichengreen and Myatt to pay a civil monetary penalty. It has previously sued the firm and its president, Sharon Vaughn, in connection with this matter and settled against Vaughn resulting in the court distributing the fund's assets to investors, ensuring that investors received their principal in full.
Myatt and Warren were previously charged in connection with this matter and Warren was found guilty of 11 wire fraud counts while Myatt pled guilty to an obstruction of justice charge based on his misconduct.
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…