Category Archives: Hedge Fund Fraud

Three Unregistered Brokers Charged For Improper Sales Of Hedge Fund Interests

New York (HedgeCo.Net) – The SEC has charged three brokers who raised funds for an Oregon-based hedge fund manager for failing to register as broker-dealers before engaging in securities transactions. “Broker-dealer registration is crucial to protecting investors from Ponzi schemes […]

SAC Hedge Fund Insider Trading Professor Resigns

New York (HedgeCo.Net) – The Neurologist linked to the Alzheimer drug tests/hedge fund insider trading case, has resigned from his position at the University of Michigan. Professor Sid Gilman is accused of leaking data to SAC hedge fund trader Mathew Martoma. Gilman was paid […]

SEC Preparing Civil Suit Against Cohen’s Hedge Fund SAC Capital

New York (HedgeCo.Net) – A week after hedge fund trader Mathew Martoma was charged with insider trading, the SEC is going after the hedge fund in question, Steven A. Cohen’s hedge fund SAC Capital, according to people familiar with the situation. “In […]

Hedge Fund Trader Mathew Martoma Released On $5 Million Bond

New York (HedgeCo.Net) – Former SAC Capital trader Mathew Martoma was charged yesterday for insider trading during an alzheimer’s disease drug trial that is being called the most lucrative hedge fund insider trading cases ever prosecuted. Martoma has been released on a […]

Hedge Fund Fraud: FBI Looking To Twitter

New York (HedgeCo.Net) According to Reuters, “The FBI has agents scouring Twitter and other social networks for tips on securities fraud.” say agents overseeing a long-running investigation into insider trading in the $2 trillion hedge fund industry. “I will tell you technology will play […]

“Historic” Hedge Fund Scheme Uncovered

New York (HedgeCo.Net) – The FBI has unsealed charges involving insider trading during an alzheimer’s disease drug trial  that is proving to be the most lucrative hedge fund insider-trading case ever prosecuted. Mathew Martoma, a former portfolio manager for a division […]

Former Hedge Fund Manager Caught in $276 Million Insider Trading Scheme

New York (HedgeCo.Net) – In what prosecutors are calling the most lucrative hedge fund insider-trading case ever prosecuted, the FBI yesterday unsealed charges involving insider trading during an alzheimer’s disease drug trial. Mathew Martoma, a former portfolio manager for a division of a […]

UBS Trader Gets Guilty Verdict

New York (HedgeCo.Net) – Kweku Adoboli, a “rogue” UBS employee has been convicted on one count of fraud, the UK jury are still considering one more count of fraud and four of false accounting, the Guardian reports. “Adoboli bowed his head when […]

Steven Colangelo “Hedge Fund Consultant” Faces 40 Years For $2.7 Million Fraud Scheme

New York (HedgeCo.Net) – Proving once again how important it is for hedge funds to properly vet their service providers, hedge fund manager/consultant Stephen Colangelo Jr., has been charged with 2 counts of scheming to defraud investors out of more than $2.7 […]

Jury Chosen In $67 Million Hedge Fund Insider Trading Case

New York (HedgeCo.Net) – A hedge fund manager and a relative of another have been excused from the jury in the Manhattan trial hedge find managers Anthony Chiasson and Todd Newman, Bloomberg reports. The jury now consists of seven women and […]

SEC Charges Louisiana Hedge Fund Manager With Fraud

New York (HedgeCo.Net) – A hedge fund manager in Baton Rouge has been charged by the SEC with defrauding investors by hiding $32 million in losses. Walter Morales, Commonwealth Advisors and the hedge funds they managed bought the lowest and riskiest tranches […]

Rajat Gupta Gets 2 Years For Hedge Fund Insider Trading

New York (HedgeCo.Net) –  Rajat Gupta, a former member of the Board of Directors at Goldman Sachs, received a prison sentence of 2 years in federal prison by U.S. District Judge Jed Rakoff. “He is a good man,” the Judge said, […]