Police Arrest Accused S.C. Hedge Fund Fraudster

Jun 4 2009 | 2:01am ET

A South Carolina investment broker has been arrested and charged with running a hedge fund fraud.

David Scaffe is accused of bilking an investor out of $54,000. Police in Charleston say he ran a Ponzi scheme, providing bogus account statements and stealing investor capital.

“He provided documents saying people were making money when in reality they were not,” Sgt. Donald Daquigan told the Daniel Island (S.C.) News. “Sometimes he would pay people off, but would get that money from someone else.”

Scaffe has been charged with breach of trust with fraudulent intent, and remains jailed, unable to post $40,000 bond. He is due in court on July 24.

The criminal charges stem from Scaffe’s relationship with Emilie McCombs of Mount Pleasant, S.C., who invested $54,000 with him.

“He said, ‘just wire it over to me so I can get it right into this hedge fund,’” McCombs told the DI News. But authorities say he stole the money.

“He just kept the money and started spending it,” Daquigan said.


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