Tuesday, 23 September 2014
Last updated 10 hours ago
Jan 26 2009 | 2:10am ET
While his apparently phony suicide note is a page out of Samuel Israel’s playbook, one aspect of missing hedge fund manager Arthur Nadel’s case seems to be pure Bernard Madoff.
Nadel, the Florida hedge fund manager who disappeared on Jan. 14 and has since been charged by the Securities and Exchange Commission with fraud, apparently used an unlicensed accountant to audit his hedge funds. Michael Zucker, who allowed his CPA license to lapse in 1990, has called himself the “internal accountant” for Nadel’s six funds, and pronounced himself “blindsided” by Nadel’s disappearance. It was Zucker who said that Nadel fled the week his firm was due to make $50 million in payments to his investors.
A 2003 prospectus for the Viking IRA Fund referred to him as “Michael Zucker, CPA.” But Zucker is not a certified accountant, and got in trouble for claiming such in 1999, when the Florida Department of Business and Professional Regulation ordered him to stop his “unlicensed and illegal” practice of serving as a CPA.
A 2006 prospectus for another Nadel hedge fund, Valhalla Investment Partners, made Zucker’s position clearer: “Michael Zucker, who is neither a certified nor public accountant, serves as the partnership’s accountant.”
Madoff, charged in a Ponzi scheme more than 100 times the size of Nadel’s, also used an allegedly fishy accountant: Friehling & Horowitz, the suburban New York firm that audited Madoff’s investment advisory business, had told the American Institute of Certified Public Accountants that it has not conducted an audit for 15 years. But it was listed on Bernard L. Madoff Investment Securities’ state of financial condition as the auditor.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.