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...
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
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...
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
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...
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...
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...
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...
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...
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...
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...
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...