The financial world of schemes and fraud continues and hedge funds can provide shelter to scammers for quite some time. When brokers take money from multiple investors by misrepresenting their qualifications and experience, its fraud.
On February 2, 2018 The SEC charged purported hedge fund manager, Nicholas Joesph Genovese, who, without shame has been conducting an ongoing scheme with his hedge fund, Willow Creek Investments LP.
SEC Halts Ongoing Fraud by Purported Hedge Fund Manager
The Securities and Exchange Commission today charged a purported hedge fund manager in New York City with a brazen offering and investment adviser fraud thereby putting an end to an ongoing scheme.
The SEC alleges that, since at least 2014, Nicholas Joseph Genovese and his hedge fund Willow Creek Investments LP raised more than $5.3 million from at least six investors by affirmatively misrepresenting his prior money-management, securities industry experience, and size of operations. In particular, the SEC charged that Genovese: falsely stated that he managed $4 billion of the Genovese Drug Store family’s assets; falsely stated that his hedge fund’s investment adviser had $30-39 billion of assets under management, when, in reality, it appears to have had less than $10 million in assets under management; falsely stated that his advisory firm had between 42 and 60 employees, when, in reality, it had less than 10 employees; and falsely stated that his hedge fund had investment gains of 30-40 percent per year, when, in reality, it sustained losses. In addition, in furtherance of his scheme, Genovese lied about his education and prior work experience, and concealed his criminal past from investors. Read the full article here
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