Finvest’s Grieve Puts House On Market, Alleged Swindler Still MIA

May 6 2009 | 1:15am ET

Last August, we broke the news that something fishy was going on at Gad Grieve’s New York-based fund of hedge funds Finvest. Needless to say, Grieve, who had spoken to FINalternatives about his funds numerous times over the years, was not happy with our reporting. In a letter to managing editor Hung Tran, Grieve penned his displeasure. 

“Hung, I have always admired and respected you and your publication for your ability to report objectively. Therefore it was surprise for me to learn of the article which you published and which suggested that Finvest was in ‘difficulty,'" Grieve wrote in an email at the time. "I have always been as transparent and cooperative with you as possible, and therefore I cannot fathom, understand or comprehend why you would want to write an article like that which is simply not true and which has no basis or foundation.”

Alas, less than six months after we published the story, the Securities and Exchange Commission brought fraud charges against Grieve. And now, it seems that the hedge fund manager who called our bluff and allegedly bilked his clients for millions is going from high roller to homeless.

Last May, Grieve bought a five bedroom Upper East Side gem for $11.8 million. That 5,700 square-foot crash pad, complete with eight fireplaces, is now on the market for $12.9 million, according to a report in The New York Observer

“The building is drop-dead gorgeous. It’s been totally wired with fiber-optic cable; there’s a security system with cameras everywhere,” the broker Laurie Trontz told the newspaper. However, when the newspaper’s reporter mentioned the SEC, she hung up. Trontz now claims that the home is being sold by “a European investment syndicate.” According to the Observer, Grieve’s name is on both the deed and the mortgage, and the SEC has an ‘order of attachment’ against the home, which means that if it is sold, Grieve won’t necessarily get the money.

Meanwhile, it seems that Grieve is now ‘missing,’ so to speak. The SEC doesn’t know where Grieve is, with one agent speculating that he may be in Israel or South Africa. One thing is for certain, Grieve’s note to Tran—the one that chastises him for his poor reporting—now hangs on the FINalternatives Wall of Shame (right next to former hedgie Albert Hsu’s personals page, and numerous other gems).

RELATED ARTICLES:

Finvest, Founder Charged With Fraud
Hedge Fund Finvest Denies Claims It Is Blowing Up
Hedge Fund To Beef Up Emerging Manager Platform
Finvest Launches Multi-Strat Emerging Manager Fund


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR