30 Mar 2010
HedgeCo News - Ethan Conrad, Frank Sim and Harrold Pressly, are being accused of running a bogus hedge fund, the Black Card Group. The allegations, according to Courthouse News Services, claim a family was cheated out of $8 million which the 'hedge fund managers' then spent on luxury vehicles and resort property.
Posted by Alex Akesson at 12:47:00 pm
Hedgeco News - Robert Moffat, Jr., a former senior executive at International Business Machines Corp. (IBM), pleaded guilty in the Manhattan federal court to conspiracy and securities fraud stemming from his involvement in the largest US hedge fund insider trading case in history. Hedge fund founder Raj Rajaratnam v. SEC.
"Moffat's guilty plea marks the 11th conviction in this ongoing insider trading investigation." U.S. Attorney Preet Bharara said Together with our partners at the FBI and the SEC, we will continue to protect the integrity of our markets by prosecuting illegal tipping by corporate professionals."
From August to October 2008, Moffat got insider information relating to IBM, Advanced Micro Devices, Inc. (AMD) and Lenovo Group Ltd. (Lenovo), according to information and statements made during the guilty plea proceedings.
Moffat confessed to providing the indider information to to Danielle Chiesi, Rajaratnam's co-defendant. She worked for New Castle Partners, an equity hedge fund group affiliated with JPMorgan Chase & Co.
The court documents reveal that in September 2008, Moffat provided Chiesi with information relating to IBM's and Lenovo's performance in the companies' respective fiscal quarters ending in September 2008.
The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of the greater of $250,000 or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a fine of $5 million.
Moffat is scheduled to be sentenced on July 26, 2010, by Judge Buchwald.
Posted by Alex Akesson at 11:42:00 am