HMC International, a hedge fund based in Montvale, boasted of returns in excess of 30 percent in 2003 and 2004.
Those are fairly impressive re sults for most investments. But it was particularly noteworthy for HMC, mainly because authorities say the firm hadn’t done any trading since early 2003 and instead was diverting investors’ money.
Late last week, federal officials in New York charged HMC’s co- manager, Bret Grebow, with steal ing about $5.8 million from investors. The U.S. Attorney’s Office in Manhattan described the fraudas a classic Ponzi scheme, where the hedge fund operators used money from newer investors to pay previ ous clients.
Grebow, 30, faces one conspiracy and two mail fraud counts. The trader, who now lives in New Ro chelle, N.Y., was released on $250,000 bail.
Neither he nor his criminal at torney could be reached for comment. Miami attorney Daniel Newman, who represents Grebow in an ongoing Securities and Exchange Commission case, declined to comment.
The SEC filed civil fraud charges against HMC, Grebow and fund founder Robert Massimi in December, alleging a similar scheme. In May, the SEC sent a letter to the judge in that case say ing it had reached a “settlement in principle” with all involved.
