Posts tagged as:

hedge fund fraud

Hedge Fund Investors to Sue SEC

October 14, 2009

SEC’s Madoff Failure Cited in Lawsuit
Just a quick note that the New York Times has written an article about two Madoff investors who are suing the SEC for not doing its job.  It will likely be a tough case for the investors/plaintiffs to prevail upon because of the doctrine of sovereign immunity (i.e. government agencies [...]

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Inspector General’s Madoff Report

September 13, 2009

SEC’s Madoff Investigation = Stunning Failure
As has been widely reported, the Inspector General has released a 450 page report on the SEC’s stunning failure to uncover the Bernard Madoff Ponzi scheme.  Below I have republished some of the more interesting items from the summary portion of the report (emphasis mine).  While we have heard many [...]

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Hedge Fund Operational Issues and Failures

August 19, 2009

Hedge Fund Due Diligence Firm Releases White Paper
We’ve published a number of thoughtful pieces on this blog from Chris Addy, president and CEO of Castle Hall Alternatives (see, for example, article on Hedge Fund Auditors).  Today we are publishing a press release which announces a new white paper from Castle Hall detailing the various reasons [...]

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NFA Cracks Down on CPO Fraud with New Compliance Rule

May 29, 2009

Proposes Amendments to Compliance Rule 2-45
The National Futures Association (NFA) proposed new amendments to Compliance Rule 2-45 regarding prohibition of loans by pools to commodity pool operators and related parties.  The amendment states that no Member CPO may permit a commodity pool to use any means to make a direct or indirect loan or advance [...]

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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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NFA Prohibits CPO Firm From Doing Business

March 24, 2009

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 an emergency enforcement action against GlobeFX Club, Inc.
March 24, Chicago - National Futures Association (NFA) announced today that it has taken an emergency enforcement action against GlobeFX Club, Inc. (GlobeFX Club), a Commodity Pool Operator located in Homestead, Florida. Effective [...]

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Four CFTC Actions against CPOs and CTAs

February 16, 2009

This past week and a half has proven to be a busy time for the CFTC’s enforcement divisions as a number of actions have been released to the public.  The four actions below showcase the unlawful and unsavory behavior of four groups.  Specifically, two of the actions below provide details of two more Ponzi schemes [...]

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Two Separate CPOs Subject to NFA Action

February 10, 2009

In two separate actions the NFA has effectively shut down two separate Commodity Pool Operators who were operating in the Northeast.  The press releases are reprinted below.
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For Immediate Release
NFA takes emergency enforcement action against New York commodity pool operator
February 9, Chicago - National Futures Association (NFA) announced today, that it has taken an emergency enforcement [...]

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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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Madoff Whistleblower

January 15, 2009

The hedge fund industry has been shaken by volatile financial markets and the Madoff investment scandal of December 2008.  While the hedge fund and investment management industries are changing because of these twin forces, many people are looking back to try to piece together what has happened and more importantly why it happened.  One primary [...]

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