Saturday, 26 July 2014
Last updated 22 hours ago
Apr 28 2009 | 2:04am ET
A Connecticut hedge fund manager has been charged with lying to potential investors about how much money he managed, the Securities and Exchange Commission said.
According to the SEC complaint, Francesco Rusciano of Stamford forged brokerage statements to overstate the value of his Ponta Negra Group hedge funds, as well as lying about the funds’ performance. On Jan. 11, the regulator said he claimed that Ponta Negra Fund I’s account had more than $43 million in it, when in fact it had less than $3 million. The complaint says he made similar overstatements in August.
What’s more, the SEC says, Rusciano never told his investors or potential investors that he had been forced to resign from UBS Securities for allegedly reporting miscues, or that he was under investigation by the Federal Reserve for allegedly scheming to defraud UBS, as well as illegal trading and banking practices.
A federal judge in Austin, Texas, where the complaint was filed, has frozen Rusciano’s assets, as well as those of the two Ponta Negra funds.
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…