‘Dumbbell’ Fugitive Hedge Fund Manager Arrested

Jan 12 2007 | 11:54am ET

Joseph Ferona, the former head of Castle Rock Trading, allegedly a sham hedge fund, was recently arrested outside a Texas health club after having eluded authorities for more than a year, according to the Rocky Mountain News.

Ferona raised $2.8 million from unsuspecting high net-worth individuals for his Global Prosperity Fund but pocketed the cash for personal expenditures, such as a down payment on a new home, boats, cars and cruises. He also made bogus claims that his fund had recorded annual gains of more than 40% over a five-year span when, in fact, from 2000 to 2002, his fund was in the red.

After the Securities and Exchange Commission finally caught wind of Ferona in 2005, he fled to Milan, Italy, but returned to Colorado less than a week later and stayed with his ex-wife before vanishing again, according to the SEC.

The FBI finally caught up to Ferona outside his gym on Dec. 13 and apprehended the barbell jockey, who is being held in Denver without bail awaiting trial, tentatively set for March. He faces prison time and fines after being indicted for mail fraud, wire fraud and money laundering.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR