Hedge Fund Manager Accused Of Lying About Assets, Performance, Past

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.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note