SEC Charges ‘Hedge Fund Manager’ With Stealing From Grandma

Nov 21 2006 | 8:14pm ET

Thirty-four-year-old Spiro Germenis doesn’t come close to making the top ten list of crooked hedge fund managers in terms of assets under management, but if the allegations filed in court against him by regulators earlier today prove to be true, he may just take a top spot as one of the sleaziest.

The Securities and Exchange Commission is alleging that Germenis, a principal of a New York State registered investment adviser, Oracle Services, stole around $6 million from investors, the majority of whom were senior citizens.

According to court documents, Germenis disappeared after misappropriating millions of dollars in investor funds. On Oct. 13, his wife filed a missing person's report with local police and his car was subsequently found abandoned at John F. Kennedy Airport. Authorities say that Germenis has fled to Greece.

It is believed that 25 investors are victims of Germenis' fraud—which involved his two firms, Oracle Services and Oracle Evolution—and that at least nine of the investors are over 60 years old.

Ironically, three years ago Germenis participated in a round-table discussion where he was quoted as saying, “If you don't have rules and structure to follow, anarchy falls." Germenis was referring to the positive aspects of having a formal networking group of peers who refer business to one another.

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