Search This Blog

31 Dec 2010

Hedge Fund Projects: Epic Louis Armstrong Bio

HedgeCo News - Good news for music lovers and art investors, film producers Oley Sassone and Bill Badalato are seeking hedge fund financing for a major motion picture based on the young life of Louis Armstrong, entitled Black & Blue.

Total budget for the project is $18 million. The film will be shot in New Orleans, where a 30% State tax credit is available. Musical bio pics such as Ray, Walk The Line, La vie En Rose, have been extremely successful at the box office (all have grossed over $100 million) and have won Academy Awards.

The investment proposal describes Black & Blue as, “A sometimes poignant, sometimes sad, sometimes humorous but always entertaining story of the young Louis Armstrong as he claws his way through the seamier side of New Orleans from childhood through adolescence to young adulthood on his path to becoming a jazz superstar – an icon in the entertainment industry.”

I’ll know more about the project soon, as Sassone is sending me the details as they develop. I’m a personal fan of both Armstrong and New Orleans, and am excited to play even a small part in the development of the film.

22 Dec 2010

Oklahoma Hedge Fund Manager Sentenced To 10 Years

HedgeCo News - Former hedge fund manager, Mark S. Trimble, of Edmond, Oklahoma, was sentenced to serve 10 years in federal prison for money laundering.

Trimble, 44, pleaded guilty in April to money laundering. Trimble’s hedge fund, Phidippides Capital Management, was used to divert $1,000,000 of investor funds to his own account, the prosecution claimed. The judge also ordered Trimble to serve two years of supervised release following his prison term and pay $9,045,451.23 in restitution to investors.

The investigation was conducted by the FBI, the Criminal Investigative Division of the IRS, and the United States Secret Service.

Hedge Fund Alert: The New Tax Act

Holland & Knight Alert on the New Tax Act

Hedge fund law specialists, Holland & Knight said that the estate, gift and generation skipping transfer tax provisions of the new tax act are of major interest.

These changes will require every estate plan to be reviewed to make sure the best advantages are incorporated. Holland & Knight feels that there are significant planning opportunities still left for 2010.

Private Wealth Services Alert 12 20 10 (413KB)

Sadis & Goldberg on the Tax Relief Act of 2010

The Tax Code has been recently amended to extend what is commonly known as the “Bush Tax Cuts” that Congress enacted in 2001 (which by their original terms expired on December 31, 2010) will apply for another two years. The extension means that the income tax rates will now stay at 28% and 35%. Capital Gains tax rates will now stay at 15% and qualified dividends will continue to be taxed at 15%. The Alternative Minimum Tax exemption amount has been increased which will lower the number of taxpayers subject to this tax.

There are a number of tax breaks for businesses and individuals, such as the ability to make a tax free distribution of up to $100,000 from an IRA to a charity, and faster depreciation for businesses when property is placed into service.

Another major change is in the Federal Estate Tax law. The Federal Estate tax exemption will now be raised to $5,000,000, and the tax rate reduced from 55% to 35% for Federal Estate taxes. For estates of decedents dying in 2010, they can elect to have no estate taxes apply, and to have a modified basis carryover, instead of an estate tax imposed retroactively along with a step-up in basis. For example, if a married couple owns $10,000,000 in assets, with a properly planned estate, they would not be subject to any Federal Estate taxes. However, we must remind you that New York State has a separate estate tax imposed on estates over $1,000,000.

Prior to 2011, the Gift Tax Exemption was limited to $1,000,000. As of January 1, 2011, the gift tax exemption is increased to $5,000,000. Taxpayers should consider using their increased gift tax exemption over the next two years, as the lifetime exemption may decrease in the near future. There are a variety of estate planning techniques which can use the increased gift tax exemption. Additionally, the Generation Skipping Tax Exemption will be raised to $5,000,000.

18 Dec 2010

5 Arrested In Insider Trading Probe - Five research executives have been arrested by the FBI, James Fleishman, from Primary Global Research, Mark A. Longoria, from Advanced Micro Devices, Walter Shimoon, from Flextronics International, and Manosha Karunatilaka from Taiwan Semiconductor Manufacturing.

The Washington Post reports that the four men were accused of selling confidential information to hedge funds while the fifth man, Daniel Devore, formerly an executive with Dell, pleaded guilty to wire fraud and conspiracy to commit wire fraud and securities fraud.

“A corrupt network of insiders at some of the world’s leading technology companies served as so-called consultants who sold out their employers by stealing and then peddling their valuable inside information,” U.S. attorney Preet Bharara said in a statement, according to The Washington Post.

3 Dec 2010

Summary of SEC Proposed Regulations Implementing Dodd-Frank’s Mandated Hedge Fund and Private Equity Fund Registration and Reporting Regime

Attached is a brief summary of the more than 400 pages of rule proposals recently released by the SEC pertaining to regulations implementing Dodd-Frank’s mandated hedge fund and private equity fund registration and reporting regime.

SEC Rule Proposals – Registration and Reporting (pdf 158KB)

The summary of the proposed rules covers which investments advisers will have to register with the SEC, which advisers will be exempt from registration with the SEC, and which advisers will have to register with the states rather than the SEC.

Also included is a reference to the timeline proposed by the SEC for implementation of the final rules, as well as remarks pertaining to an adviser’s own timeline for SEC registration, if necessary.