Idaho Investigates Alleged Hedge Fund Fraud

Jan 20 2009 | 2:04am ET

These days, it seems like Ponzi schemes are popping up everywhere.

The latest is in Idaho, where securities regulators said last week they are looking into claims that one Daren Palmer ripped investors off to the tune of $100 million. According to several of his alleged victims, Palmer raised money for his Trigon Group, based in Idaho Falls, which according to at least two investors Palmer marketed as a hedge fund.

According to a lawsuit against Palmer filed earlier this money, Mark and Penny Peterson said they agreed to let Palmer invest $500,000 that he owed them for a plot of land they say they sold him, but that he neither paid them nor returned the property when they sought to redeem their investment.

Investors apparently became suspicious in July, when Palmer allegedly asked some for more time to pay their quarterly dividends. At an October meeting, Palmer allegedly told several investors that “he was getting lots of margin calls and couldn’t get out,” Kevin Taggart, who says he is owed $600,000, recalled.

Marilyn Chastain, the securities bureau chief for Idaho’s Dept. of Finance, said after a meeting with some 30 investors that the bureau believes “there is a pretty significant amount of money involved—tens of millions, maybe.” But Taggart told The Wall Street Journal that, after consulting with some other Palmer investors, “as near as we can tell, we lost $100 million.”


In Depth

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note