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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Charges Man for Defrauding Investors out of Millions of Dollars by Posing as Hedge Fund Billionaire
According to the SEC’s complaint, Costello portrayed himself to the public as a seasoned, licensed investment professional who was building a conglomerate in the cannabis industry. His alleged false representations included credentials as a Harvard MBA, experience managing a $1.15 billion hedge fund, and years of experience on Wall Street. As alleged in the complaint, […]
SEC Charges Hedge Fund Portfolio Manager with Fraud
According to the SEC’s Complaint, from at least November 2016 through February 2018, Lee A. Bressler served as portfolio manager for the Carbon Master Fund, L.P. The SEC alleges that Bressler represented to investors that the fund followed a conservative investment strategy emphasizing capital preservation and low risk. The SEC further alleges, however, that while […]
Hedge Fund Lawsuit Financing Poised for SEC Enforcement Scrutiny
The US Securities and Exchange Commission Aug. 10 proposed requiring private funds to report confidentially to the agency about their spending on litigation finance . The funding, which litigants and law firms use to cover their costs, has reached billions of dollars. The potential reporting is part of a broader hedge fund transparency push by […]
Regulators Weigh Asking Hedge Funds to Report Crypto Exposure – WSJ
The collapse in cryptocurrency prices this year has left U.S. regulators scrambling to understand the risks that digital-asset markets could pose to the broader economy. They may soon enlist hedge funds in the effort. The Securities and Exchange Commission issued a proposal Wednesday that would require large hedge funds to report their cryptocurrency exposure through […]
Crypto Hedge Fund Three Arrows Capital Considers Asset Sales, Bailout – WSJ
Cryptocurrency-focused hedge fund Three Arrows Capital Ltd. has hired legal and financial advisers to help work out a solution for its investors and lenders, after suffering heavy losses from a broad market selloff in digital assets, the firm’s founders said on Friday. “We have always been believers in crypto and we still are,” Kyle Davies, […]
Mike Novogratz Says Two-Thirds of Crypto Hedge Funds Will Fail – Bloomberg
Mike Novogratz, the founder and chief executive officer of Galaxy Digital Holdings Ltd., said two-thirds of the hedge funds that invest in cryptocurrencies will fail as a consequence of the current market downturn. “Volume will go down, hedge funds will have to restructure,” Novogratz said at the Piper Sandler Global Exchanges & Brokerage Conference in […]
London hedge funds’ websites cloned as scammers grow bolder and more ubiquitous – Reuters
Some of London’s top hedge funds and asset managers are among those that have been targeted by rogue internet operators who clone their names and websites in an attempt to part unsuspecting investors from their cash. via London hedge funds’ websites cloned as scammers grow bolder and more ubiquitous – Reuters.
How hedge funds use drones, satellite images and web scraping to gain an edge – CNN
Last summer, a large hedge fund had a hunch: Lumber prices were about to crash because of excess inventories caused by a railway strike. Before placing a massive short bet that lumber company share prices would fall, executives at the hedge fund confirmed the theory by hiring a drone to fly over lumberyards, people familiar […]
Yale Alum, 21, Accused of Running Hedge Fund Scam by SEC – Bloomberg
This is one college side hustle a recent Yale grad might be regretting. Omar Zaki, 21, ran a hedge fund while enrolled at the Ivy League university, saying his firm relied on an algorithm that had produced eye-popping returns over a 10-year period, according to the Securities and Exchange Commission. The misrepresentation is one of […]
Fake hedge fund manager pleads guilty to securities fraud | New York Post
Scronic, 46, on Thursday pleaded guilty to securities fraud, admitting that he defrauded 45 investors — many of them pals — out of $22 million while running his fake hedge fund from his home. In seven-plus years of running the scam, Scronic posted only one positive quarter, court papers reveal. via Fake hedge fund manager […]