Posts tagged as:

fraud

CFTC Uncovers More Frauds and Ponzi Schemes

April 9, 2009

This week alone the Commodities Futures Trading Commission issued 5 separate press releases regarding various frauds and ponzi schemes.   As we have noted many times before investors should make sure they conduct adequate due diligence into their managers.  It also goes without saying, but managers should not engage in fraudulent conduct, make misrepresentations to investors, [...]

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Charges for Nadel

January 22, 2009

SEC Charges Missing Trader for Defrauding Investors at Sarasota-Based Hedge Funds
FOR IMMEDIATE RELEASE
2009-10
Washington, D.C., Jan. 21, 2009 — The Securities and Exchange Commission today charged Arthur Nadel of Sarasota, Fla., with fraud in connection with six hedge funds for which he acted as the principal investment advisor. According to the SEC’s complaint, Nadel provided false [...]

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Another Ponzi Scheme

January 12, 2009

Broken Record
I’ve said it all before.  The following press release can be found here.  Please see the following articles on hedge fund and investment advisor fraud.

Hedge Funds, Congress and Madoff

Investment Advisor Fraud
CPO Fraud - Lessons in Due Diligence
Affinity Fraud Alert

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Fraudulent Commodity Pool Operator Issued Injunction

December 3, 2008

A commodity pool operator is issued an injunction for fraudulent behavior.  In classic fashion, this fraudster touted performance results which were grossly inaccurate.  The scheme ended earlier this year and investors lost almost $6 million dollars.  As we’ve noted before, hedge fund investors (including those investors in commodity and futures hedge funds) need to make [...]

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Investment Advisor Fraud

November 21, 2008

In addition to fraud in the hedge fund space, investors need to be aware of fraud with strictly investment advisory firms.  This notice and the complaint below provide more information on a specific investment advisory firm fraud.

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NFA Suspends Commodity Hedge Fund Firm

November 1, 2008

The NFA suspended the membership of SNC Investments, a firm which ran commodity hedge funds and commodity managed accounts.  The original post can be found here.
For Immediate Release
For more information contact:
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org
NFA takes emergency enforcement action against SNC Investments, Inc. and its principal, Peter Son
October 31, Chicago - [...]

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SEC brings fraud charges against investment advisor in connection with hedge fund investments

September 25, 2008

Investment advisors who recommend hedge fund investments should be very careful to disclose all material agreements between the advisor and the hedge fund and hedge fund manager.  In the case below an investment advisor recommend hedge fund investments to its clients without disclosing to such clients that the advisor was receiving a part of the [...]

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SEC files complaint against forex fraud

August 29, 2008

Summary:
Last Wednesday the SEC filed a complaint against a forex hedge fund manager who was supposedly using a “trading robot” to generate huge returns. It turns out the forex hedge fund manager and the trading robot did not generate the outsized returns, but instead lost investor money. There are two very important items [...]

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CFTC order levies major fine on hedge fund trader

August 21, 2008

Summary:
The CFTC ordered a hedge fund manager who operated four commodity pools to pay more than $279 mm in restitution to prior hedge fund investors as well a $20 mm civil penalty for his fraud. The manager concealed huge losses from investors by issuing false account statements which reflected consistently profitable trades. The [...]

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CFTC Announces Formation of Retail Foreign Currency Fraud Enforcement Task Force

August 12, 2008

Washington, DC— The Commodity Futures Trading Commission (CFTC) has formed a special task force charged with investigating and litigating fraud in the off-exchange retail foreign currency (forex) market.
The creation of the task force within the Division of Enforcement comes in the wake of Congress’ passage in June 2008 of “The Food, Conservation, and Energy Act [...]

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