Saturday, 5 September 2015
Last updated 6 hours ago
Oct 7 2009 | 10:00am ET
The latest Ponzi scheme isn’t a hedge fund fraud, but allegedly a defrauder of hedge funds.
According to prosecutors, a pair of scam artists took in a number of smaller hedge funds and private equity firms as part of an $80 million Ponzi scheme. Federal prosecutors in New York have charged Vance Moore II and Walter Netschi with running a fraud that promised victims it would invest their money in automatic teller machines.
According to the indictment, Netschi told investors that he placed ATMs in high-traffic retail areas. He then had the investors sign an agreement with a phony company allegedly run by Moore, which was supposed to service, process and maintain the ATMs.
The two claimed to have purchased some 4,000 ATMs, but about 90% of those were either fake or owned by other companies, prosecutors said. Meanwhile, the promised returns in excess of 20%.
Both men have been charged with wire fraud and conspiracy.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…