Accused Ponzi Schemer Bailed Out By Alleged Victims

Apr 3 2009 | 1:02am ET

The California hedge fund manager at the center of a bizarre alleged Ponzi scheme has been released on bail, thanks in part to some of his apparent victims.

Three of the 150 people that authorities say invested in Anthony Vassallo’s hedge fund have put up their homes to secure his release from jail, according to KCRA-3 television in Folsom, Calif. Last month, Vassallo was charged with fraud, money laundering and securities law violations. His former bodyguard was also arrested, accused of trying to shake down a pair of Vassallo’s investors.

Despite the fact that he’s accused of swindling them and their fellow investors, many of whom Vassallo met through his Mormon church, his sister’s mother-in-law and two of her friends, all investors in Vassallo’s Equity Investment Management and Trading, have put up the equity of their homes to secure Vassallo’s release.

According to prosecutors, Vassallo promised investors 36% returns with no risk. After his early investments produced huge lawsuits, the complaint alleges he turned Equity Investment into a Ponzi scheme in September 2007. The Securities and Exchange Commission shut the firm down last month, and froze $1.2 million of his assets.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

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