June 30, 2006

Fraud Case Reported with Hedge Fund Trader

In recent months, there have been several instances of fraud cases related to hedge fund. On Friday, hedge fund trader Bret Grebow was arrested for operating a fake scheme, called as "Ponzi Scheme". The fake scheme robbed investors of $5.8 million. Grebow and another co-manager allegedly used new investor funds to pay distributions and redemptions to existing investors in the HMC International LLC fund of Montvale, New Jersey. According to Manhattan Disrict Attorney, the fund gained no substantial returns since Grebow and his aide established the fund five years ago.

According to Chron -

No trading took place in the fund's main brokerage account since March 2003, Garcia said. The Securities and Exchange Commission brought similar civil charges in December against Grebow, a 30-year-old resident of New Rochelle, N.Y., as well as HMC manager Robert Massimi.

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Those guys were just fall guys. Someone had to be. One day someone will connect the dots.

Posted by: biff romoray | Jul 2, 2006 12:02:09 AM

I agree with you. Such people need to brought into book so that there are no such incidents in future.


Posted by: Sagar | Jul 3, 2006 4:58:55 AM

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