‘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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...