Obama Names Future Financial Market Regulators
President-elect Brarack Obama’s choices for the head of the SEC and the CFTC have been generally well-received. Mary Schapiro and Gary Gensler have very large jobs ahead of them as Congress is expected to require hedge fund registration with the SEC, and the CFTC also has the mandate to regulate the off-exchange forex markets. As [...]
Cox Comments on Madoff Investigation
Statement Regarding Madoff Investigation
FOR IMMEDIATE RELEASE
2008-297
Washington, D.C., Dec. 16, 2008 — Securities and Exchange Commission Chairman Christopher Cox issued the following statement today concerning its ongoing investigation in the case of SEC v. Madoff:
Since the Commission first took emergency action against Bernard Madoff and his firm, Bernard L. Madoff Investment Securities, LLC on Thursday, December [...]
Green Fund of Hedge Funds
The following article on a green fund of hedge funds was originally published on the website www.socialfunds.com and can be found here. (For more information on environmentally focused hedge funds, please also see our article on Carbon hedge funds.)
Over the Hedge: New Green Hedge Fund of Funds
by Anne Moore Odell
Kenmar plans to launch socially responsible [...]
Another Commodity Pool Operator Fraud – Lesson in Hedge Fund Due Diligence
We frequently discuss scams involving the investment management and hedge fund industry as a warning to potential hedge fund investors to take the hedge fund due diligence process seriously. In the CFTC release posted below, we have a classic scam where the sponsors of a commodity/futures fund acted in a fraudulent manner and used the [...]
Hedge Fund Managers and Investment Advisor Registration Status
Many hedge fund managers who are registered as investment advisors with the SEC have experienced losses this year as well as investor redeptions. For some managers the losses combined with investor redemptions may have the effect of decreasing an advisor’s assets below the $25million threshold for SEC investment advisor registration. Generally an investment advisor is [...]
Hedge Funds Blindsighted by Massive Ponzi Scheme
According to a SEC release this morning (and every other financial news agency), major hedge funds, banks and other financial institutional were caught in a Ponzi scheme of epic proportions. While it is hard to believe that such large groups were blindsighted by this, it does showcase the fact that fraud can happen to even [...]
Hedge Fund Fraud - Prominent Hedge Fund Attorney is Wrongdoer
Usually our discussion of hedge fund frauds revolves around unscrupulous promoters who engage in some sort of fraudulent behavior against hedge fund investors. Most of the time the fraud is based on some sort of ponzi scheme. However, in the case reprinted below, the fraud was actually perpetuated against many hedge funds, including some funds [...]
Hedge Fund Due Diligence - Affinity Fraud Alert
In these uncertain and volatile markets hedge fund due diligence is more important than ever. We’ve discussed how hedge fund due diligence is likely to change, but it is also important to note that hedge fund frauds can be detected through simple due diligence procedures. In this vein, the NFA has released a notice and [...]
NFA Proposes that all CPO and CTA Disclosure Documents be Filed Online
CFTC Responds by Proposing Changes to CFTC Regulations Regarding Disclosure Documents
The CFTC recently proposed a change to its regulations based on a request from the NFA. The proposed regulations would require CPO and CTA disclosure documents to be submitted only online to the NFA for approval. The CFTC is requesting comments on this proposal which [...]
Another CFTC CPO Fraud Notice
Below is a CFTC notice regarding another fraudulent commodity futures manager out of California. The manager, who was apparently registered as a CTA, engaged in a variety of frauds on his clients and was also not properly registered as a commodity pool operator. Investors are again urged to engage in proper hedge fund due diligence [...]
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