Category Archives: Hedge Fund Fraud

FINRA Issues Notice for Hedge Funds Using Social Media

New York (HedgeCo.net) – Last month the Financial Industry Regulatory Authority (FINRA), issued a regulatory notice giving guidance on how FINRA rules governing communication with the public apply to social media sites that are sponsored by a financial firm or […]

Rajaratnam & Chiesi Charged With a Superseding Indictment

New York (HedgeCo.net) – Raj Rajaratnam and Danielle Chiesi Federal have been accused with a 19-count superseding indictment by Federal prosecutors yesterday, Courthouse News Service reported. A superseding indictment is an indictment that is filed subsequent to an original indictment. […]

“Octopussy” Pleads Not Guilty To Hedge Fund Insider Trading, 6 Others

New York (HedgeCo.net) – Seven hedge fund traders and lawyers pleaded not guilty to securities fraud charges in the USA v. Goffer et al. case, according to Reuters. Zvi Goffer, dubbed “Octopussy”, appeared before Manhattan federal court Judge Richard Sullivan […]

Two Hedge Funds Charged Under SEC Rule Prohibiting Short-Selling

In one case this week, the SEC charged Los Angeles-based AGB Partners LLC and its principals Gregory A. Bied of Boise, Idaho, and Andrew J. Goldberger of Santa Monica, Calif., finding that they netted thousands of dollars in improper profits […]

Galleon Hedge Fund Fraud Case Claims 8th Guilty Plea

New York (HedgeCo.net) – The Galleon hedge fund insider trading case yesterday saw its eighth guilty plea in Mark Kurland, a onetime colleague of Danielle Chiesi at New Castle Funds LLC, Reuters reports. The SEC alleges that Kurland, Chiesi and […]

Hedge Fund Ponzi Scammer’s Company Sold by Court

Nnew York (HedgeCo.net) – The director of South American Development Corporation (SADC), Jerry Gillman, has purchased Home Front Homes LLC, a Structural Insulated Panel manufacturer located in Englewood Florida. In 2006, Art Nadel using a hedge fund Ponzi scheme ended […]

UPDATED: Advisers Charged With $160 Million Nadel Related Hedge Fund Fraud

New York (HedgeCo.net) – The SEC has charged two investment advisers with securities fraud for misleading investors about the financial condition of three hedge funds they managed, and misrepresenting that they controlled the funds’ investment and trading activities when in […]

Kumar Pleads Guilty in Galleon Hedge Fund Case

New York (HedgeCo.net) – Former senior partner at McKinsey & Co.,  Anil Kumar, yesterday pleaded guilty to conspiracy, insider trading and securities fraud in the Galleon/Raj Rajaratnam hedge fund fraud case, the U.S. Attorney’s Office said. The prosecution alledged, before […]

Ponta Negra Hedge Fund Manager Pleads Guilty

New York (HedgeCo.net) – Former Stamford hedge fund manager, Francesco Rusciano. waived his right to indictment and pleaded guilty today before US  Judge Ellen Bree Burns in New Haven to one count of wire fraud. According to court documents and […]

Khan’s Plea Accepted At Hedge Fund Billionaire Raj Rajaratnam’s Trial

New York (HedgeCo.net) – Hedge fund consultant Roomy Khan made her first public appearance a Manhattan court yesterday, according to Bloomberg. In October of this year, Khan pleaded guilty to a criminal information charging her with conspiracy to commit securities […]

Manager Gets 24 Years In Hedge Fund Fraud Case

New York  (HedgeCo.net) – Hedge fund manager Won Sok Lee was sentenced this week by Judge Kenneth Ryskamp on wire fraud charges for his participation in a massive hedge fund fraud scheme, according to the Miami FBI. Lee was sentenced […]

FINRA Fines Terra Nova Financial $400,000; Firm Made Over $1 Million in Improper Soft Dollar Payments

New York – The Financial Industry Regulatory Authority (FINRA) today announced that it has fined Terra Nova Financial, LLC, of Chicago, $400,000 for making more than $1 million in improper soft dollar payments to or on behalf of five hedge […]