Tuesday, 16 September 2014
Last updated 3 hours ago
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.
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…
The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?