Category Archives: Hedge Fund Fraud

Update: Hedge Fund Bankruptcy Trustee Sues Investment Firms

New York (HedgeCo.net) – The trustee for failed hedge fund Petters Group, Douglas Kelley, has sued the Epsilon-Westford funds founded by Steve Stevanovic, according to Bloomberg. The bankruptcy trustee is seeking to recoup over $3.2 billion to cover the company’s debt, Bloomberg said, “Seventeen funds affiliated with […]

Wiretap Evidence Challenged In Galleon Hedge Fund Case

New York (HedgeCo.net) – Hedge fund founder Raj Rajaratnam is again seeking to throw out the evidence gained by the prosecution’s wiretapping last year. “In applying for wiretap permission in March 2008, an FBI agent failed to tell a judge […]

Another Goldman vs. Hedge Fund Lawsuit

New York (HedgeCo.net) – Hedge fund Dodona I LLC., has filed a class action suit against Goldman Sachs and seeks damages.  The hedge fund is said to have invested four million dollars in securitized mortgage loans (CDO) under the name Hudson Mezzanine, […]

Bell gets 5 years for Involvement in Petters Hedge Fund Ponzi Scheme

New York (HedgeCo.net) – Former hedge fund manager Greg Bell was sentenced yesterday to to six years in federal prison, five after time seved. Through his Chicago hedge fund, Lancelot Investment Management, Bell is accused of helping prop up the […]

Judge Freezes Chicago Hedge Fund Manager’s Assets

New York (HedgeCo.net) – A Colorado Deputy Securities Commissioner has accused Mark Hamilton Yost, a former hedge fund manager from Chicago, with defrauding investors out of approximately $25 million, the Chicago Tribune reports. The complaint states that the hedge fund […]

6 Months Inside For Robert Moffat in Hedge Fund Insider Trading Ring

New York (HedgeCo.net) – Former IBM vice president Robert Moffat was sentenced to six months in prison in the Rajaratnam/Chiesi hedge fund insider trading case, the Courthouse News Services reported this morning. Judge Deborah Batts additionally fined Moffat $50,000. “White-collar […]

Hedge Fund Investors to Sue Ernst & Young

New York (HedgeCo.net) – A lawsuit has been filed against hedge fund auditors Ernst & Young after a group of investors lost more than $17 million following the collapse of a Plano, Texas-based hedge fund that promised low-risk investments. The […]

Vizcaya Hedge Fund Ordered to pay $180 Million to Picard in “Clawback” Lawsuit

New York (HedgeCo.net) – Hedge fund Vizcaya Partners Ltd., have been ordered to pay $180 million to Irving Picard, a trustee for Bernard Madoff’s investment-advisory business by Judge Burton Lifland in Manhattan Bankruptcy Court. The judge said that the hedge […]

Guilty Plea From Hedge Fund Manager In University Ponzi Scheme

New York (HedgeCo.net) – Former hedge fund manager Paul R. Greenwood pled guilty to criminal charges involving a Ponzi-esque scam in which he is alleged to have cheated millions from four university endowments. The Chronicle For Higher Education reports that […]

SEC Pays $1 Million To Hedge Fund Whistleblowers

New York (HedgeCo.net) – Based on the new Dodd-Frank Act that was just signed into law last week by President Obama, new legislation allows the SEC to award huge sums to whistleblowers in insider-trading cases such as the one against […]

SEC Fines Goldman Sachs $550 Million Over Hedge Fund Transaction

New York (HedgeCo.net) – The SEC warned that “half truths and deception” would not be tolerated on Wall Street, as they fined Goldman Sachs over $550 million, ordering a sweeping review of the companies business standards. Without admitting or denying […]

Former SEC Agent Walks On Hedge Fund Fraud Charges

New York (HedgeCo.net) – A former lawyer for the SEC was sentenced to two years of supervised release, Dow Jones reported. Robert L. Miller had plead guilty to conspiracy to commit wire and securities fraud late last year in connection […]