'Hedge Fund' Cabbie Arrested For Fraud

May 4 2009 | 1:00am ET

A New York livery cab driver who posed as a hedge fund managed was arrested on Thursday, along with one accomplice, and charged with swindling investors out of $20 million.

The Securities and Exchange Commission has charged Alan Fishman and Daniel Ledven with securities and wire fraud, alleging that their scheme went back at least five years.  A third alleged accomplice, Fishman’s nephew Gary Gelman, is still at large.

Prosecutors say that the men claimed to run Manhattan-based A.R. Capital Group, which purportedly invested in international real estate and leveraged trading deals, however their clients’ money was never invested.  The men gave their customers false monthly statements showing large returns, when in actuality the $20 million they received from investors was wired to Ukrainian and Lithuanian bank accounts. 

With echoes of Bernard Madoff’s Ponzi scheme, some of the victims of the A.R. Capital scheme were elderly.

When the SEC first began investigating the firm in 2006, it abruptly closed down its operations. However, the men continued to solicit money from unsuspecting investors.

If convicted, the men could each spend up to 20 years in the clink. 


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.