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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…