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

Q&A: MackeyRMS's Chris Mackey On A High Tech Fix To Broker Votes

Jun 23 2017 | 8:17pm ET

The looming implementation of the EU’s MiFID II rules regarding research has put...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of