Oracle Hedge Fund Fraudster Flees

Oct 23 2008 | 1:42am ET

A phony hedge fund manager has been ordered by a federal judge to repay more than $8.4 million in ill-gotten gains. The only problem is nobody can find him.

The United States District Court for the Eastern District of New York this month entered the final judgment against Spiro Germenis, based on a 2006 Securities and Exchange Commission complaint. The SEC says that Germenis and two hedge funds that he operated, Oracle Services and Oracle Evolution, diverted investors' money for his own use, and that Germenis then fled the jurisdiction.

The SEC also alleged that Germenis created phony or altered account statements that he provided investors to conceal his misuse of the money entrusted to him.

Geminis’ wife reported him missing on Oct.16, 2006 with local police. His car was found at JFK airport and he is believed to have fled to Greece.

The court has ordered Germenis to pay $7.7 million in undisgorged profits and interests and $720,000 in civil penalties.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of