Sunday, 29 November 2015
Last updated 1 day ago
Apr 6 2009 | 2:06am ET
A fugitive no more, accused hedge fund fraudster Won Sok Lee returned to Florida in handcuffs last week and was ordered held without bail.
Lee, a partner in the collapsed West Palm Beach, Fla.-based hedge fund KL Financial, was indicted along with two others in December 2006 on 35 counts of conspiracy, mail fraud and money laundering. But he fled the U.S. before having to face the music.
Lee was arrested earlier this year in South Korea, as he attempted to board a flight to Argentina. He was extradited last week.
A federal judge in West Palm Beach ordered Lee held without bail on Friday, with prosecutors making the obvious argument that the one-time fugitive is a flight risk. Lee, who has yet to hire a lawyer, will be back in court on Friday.
Prosecutors say that Lee and his partners, brothers Jung Bae Kim, better known as John Kim, and Yung Bae Kim, ripped 250 investors off to the tune of $194 million between 2000 and 2005. The trio allegedly pretended that John Kim was a hugely successful day-trader with a proprietary system that earned triple-digit returns. Authorities say KL sent out bogus account statements showing big profits when, in fact, the firm lost some $30 million it did trade, with Lee and the Kims stealing the rest.
After pleading guilty to the charges, John Kim was sentenced to more than 18 years in prison; his brother, who also pleaded guilty, received more than 6 years.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…