Securities

Recent Posts

Europe’s New Directive on Alternative Investment Fund Management
Posted on 15 Nov 2010 by Doug Cornelius

The European Parliament has approved the Directive on Alternative Investment Fund Managers. European countries will now be setting up a framework for regulating hedge funds and private equity funds. The AIRM Directive passed with 513 votes to 92 with... Read More

SEC Continues Crackdown on Overvaluations of Hedge Fund Assets
Posted on 29 Oct 2010 by Clint A. Keller

As we have previously discussed here , the Securities and Exchange Commission's Asset Management Unit has been investigating whether hedge fund managers overvalue illiquid assets so as to generate higher management fees. Most recently, on October... Read More

Dodd-Frank Wall Street Reform Contains Big "Surprise" for Hedge Funds
Posted on 30 Jun 2010 by Doug Cornelius

Should Private Funds Have more than $10 Billion? The current draft of the Dodd-Frank Wall Street Reform and Consumer Protection Act has a surprise in it for big hedge funds. By "surprise" I mean tax. Title XVI: Financial Crisis Special... Read More

The SEC Continues to Investigate Side Pockets and Valuations
Posted on 9 Mar 2011 by Doug Cornelius

The SEC brought another case against a private investment fund for misuse of side pockets . Lawrence R. Goldfarb of Baystar Capital Management agreed to pay a hefty fine to settle claims brought by the Securities and Exchange Commission for misuse... Read More

SEC Targets Use of Side Pockets by Hedge Funds
Posted on 28 Oct 2010 by Clint A. Keller

The Securities and Exchange Commission's Asset Management Unit has been investigating whether hedge fund managers have overvalued assets in "side pockets" and then charged investors higher fees based on those inflated values. A side pocket... Read More

Hedge Fund Manager Settles With SEC And USAO
Posted on 3 Mar 2011 by Thomas O. Gorman

Lawrence Goldfarb, the manager of a successful hedge fund, and the fund he managed, settled charges with the SEC and the U.S. Attorney's Office stemming from his diversion of over $12 million from a side pocket investment of the fund. Investors... Read More

The Insider Trading Probes: More Blue Collar Tactics
Posted on 23 Nov 2010 by Thomas O. Gorman

Insider trading involving hedge funds and their expert advisers is the focus of a probe by the U.S. Attorneys Office for the Southern District of New York, the FBI and the SEC, according to multiple media sources. Spokesmen for the USAO and the SEC... Read More

Dodd–Frank: Hedge Funds
Posted on 31 Aug 2010 by Thomas O. Gorman

Hedge funds were a key subject of debate during the passage of Dodd-Frank. While the funds were not tied to the causes of the market crisis, they do represent large pools of assets which can impact the market. Regulators frequently note that they have... Read More

SEC Whistleblowers can Help Uncover "Soft Dollar" Practices
Posted on 3 Jan 2011 by George Pressly

Hedge fund operators (politely called "Investment Managers" on Wall Street) can make the plaintiffs' bar look like expensively dressed social workers. The hedge fund industry is estimated to be a $2.5 trillion industry . Potential hedge... Read More

Hedge Fund Hotels and Compliance
Posted on 30 Dec 2010 by Doug Cornelius

The Massachusetts Secretary of the Commonwealth has been investigating hedge fund hotels. Start-up hedge fund managers receive reduced-rent office space in return for send their trading business to the landlord. UBS AG has agreed to pay $100,000 to... Read More

California Man Receives 65-Month Sentence for $3.3 Million Ponzi Scheme
Posted on 22 Jun 2012 by Jordan D. Maglich

A California man has been sentenced to serve 65 months in federal prison after pleading guilty to operating a Ponzi scheme that duped investors out of over $3 million. Krittibas Ray, 43, of Albany, California, was indicted in December 2011 on two counts... Read More

Job Description For CCOs of Advisers to Private Investment Funds
Posted on 3 Dec 2010 by Doug Cornelius

Back in 2005, Associate Director Office of Compliance Inspection and Examinations of the SEC, Gene Gohlke gave a speech addressing hedge funds who would soon have to register under the doomed hedge fund rule. He focused on what the funds needed in... Read More