Monday, 22 December 2014
Last updated 1 hour 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.