Tuesday, 26 July 2016
Last updated 3 hours ago
Jun 24 2009 | 2:19am ET
A Texas hedge fund manager has been charged with defrauding investors of nearly $14 million.
The U.S. Attorney’s Office for the Northern District of Texas filed money laundering charges against Rod Stringer on Monday. The criminal charges come five months after Stringer was hit with a civil suit by the Securities and Exchange Commission, accused of running a Ponzi scheme and stealing money raised for his phony RCS Hedge Fund.
According to the SEC, Stringer used $2.4 million to pay off other investors and the rest to buy himself the finer things in life, including fancy cars, a boat, a horse-racing partnership and an office swimming pool.
Stringer, of Lamesa, allegedly told investors that the fund, which he said had $45 million in assets from 31 investors, had enjoyed phenomenal returns: Annual gains as high as 61% and total returns of more than 600%. Contrary to those grandiose claims, the SEC and Federal Bureau of Investigation say what little investing he did was a disaster, resulting in substantial losses.