Monday, 24 November 2014
Last updated 26 min ago
Jan 21 2009 | 2:58am ET
Another day, another Ponzi scheme: The Securities and Exchange Commission yesterday sued a Texas man for allegedly defrauding investors of at least $8.5 million.
According to the SEC, Rod Stringer raised the money for his phony RCS Hedge Fund. But just $1.5 million of the money collected was actually deposited in Stringer’s account. The agency alleges in their complaint, filed in federal court in Lubbock, Texas, that Stringer used $2.4 million to pay off other investors and the rest to buy himself the finer things in life, including fancy cars, a boat, a horse-racing partnership and an office swimming pool.
Stringer, of Lamesa, Texas, allegedly told investors that the fund, which he said had $45 million in assets from 31 investors, had enjoyed phenomenal returns: Annual gains as high as 61% and total returns of more than 600%. Contrary to those grandiose claims, the SEC and Federal Bureau of Investigation say what little investing he did was a disaster, resulting in substantial losses.
The SEC has asked the court to restrain Stringer from securities law violations. It is seeking repayment of the missing money with interest, as well as civil penalties.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...