July 16, 2006

Mother Helped Son in Hedge Fund Scam

A mortgage broker in Greenwich admitted that she helped her son in recruiting investors in a multimillion-dollar hedge fund scam. The lady, Ayferafet Yalincak, 51, pleaded guilty to conspiracy to commit wire fraud. Her 22-year old son, Hakan also admitted guilt in the bank fraud and wire fraud. While the mother could face a five-year jail term, the son could get a jail sentence of up to 50 years. The lady attended meetings with investors and allowed her son to present her as a member of a wealthy Turkish family. Both the mother-son duo convinced the investors that they were going to invest millions in the hedge fund. According to the prosecutors, the scheme cost investors millions of dollars.

Chron reports that -

The fund did not exist, and prosecutors said investor money was used to buy a Porsche, a Tiffany diamond and other jewelry. The Pound Ridge, N.Y., family also gave $1.25 million as a down payment on a $21 million donation to NYU.

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July 16, 2006 in Gossip & Scandal | Permalink




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