Wednesday, 30 July 2014
Last updated 13 hours ago
Feb 26 2009 | 11:14am ET
Mark Bloom and his North Hills Management have been hit with securities fraud charges for allegedly ripping investors off to the tune of $30 million.
Bloom allegedly sold a multi-strategy fund of funds, which the Securities and Exchange Commission says actually invested in just one hedge fund, to investors and used the balance on anything but hedge funds. Specifically, Bloom allegedly spent more than $13.2 million on luxury homes, cars and boats for himself and his wife, who is named as a relief defendant. Those funds that were actually “invested” were put with what the complaint alleges was actually a phony hedge fund.
According to the SEC, one of the fund's largest investors, a charitable trust that funds children's schools, began making redemption requests in November 2007. Bloom allegedly evaded those requests, failing to meet the withdrawals sought in full; the complaint alleges that he does not have the means to do so. The trust is owed more than $9.5 million.
The SEC's complaint also seeks a final judgment permanently enjoining Bloom from future violations of the federal securities laws and ordering him to pay financial penalties and disgorge ill-gotten gains with prejudgment interest. Bloom also faces criminal charges from the U.S. Attorney's Office for the Southern District of New York and related charges by the Commodity Futures Trading Commission.
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…