Illinois Man Accused Of Running Ponzi Scheme

Oct 6 2009 | 11:04am ET

An accused hedge fund fraudster has been slapped with an asset freeze as federal regulators investigate an alleged $40 million Ponzi scheme.

The Securities and Exchange Commission secured the freeze against William Huber, who it says lied to investors in his three hedge funds managed by his Decatur, Ill.-based Hubadex Inc., about both their size and their returns, and used some of their money to fund his lavish bi-coastal lifestyle.

According to the SEC’s civil suit against Huber, he told investors in his Quarter Funds, Symmetry Fund and Trimester Fund that he was managing more than $40 million, when he actually had just $3 million. Huber sent out bogus account statements to his alleged victims as recently as Aug. 31 making the claim, the SEC said.

But the regulator said that’s not all Huber lied about: He allegedly told his clients that the funds were generating big returns. In fact, the SEC claims, Huber lost money on the trading that he did, but collected performance fees on the bogus returns, anyway.

The money he didn’t invest he spent on himself, the SEC said, including homes in Pelican Bay, Fla., and La Jolla, Calif.

Bernard Madoff’s downfall led to yet more lying, the SEC said. In the wake of Madoff’s massive $65 billion Ponzi scheme, Huber e-mailed his clients claiming that he was no Madoff. He is also accused of lying to agency staff during their probe.

The SEC complaint, filed in Chicago, also named Huber’s wife, Ruthann, and his funds as relief defendants.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.