Sunday, 1 March 2015
Last updated 2 days ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…