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Platinum Partners Hedge Fund Accused of $1 Billion Fraud

posted by CoolHand on Tuesday December 20 2016, @11:06PM   Printer-friendly
from the don't-worry-they-got-you-covered dept.

takyon writes:

http://www.reuters.com/article/us-platinumpartners-lawsuit-idUSKBN1481BI

Top executives of New York-based hedge fund manager Platinum Partners were arrested on Monday and charged with running a $1 billion fraud that federal prosecutors said became "like a Ponzi scheme" as its largest investments lost much of their value.

Led by Mark Nordlicht, Platinum was known for years for producing exceptionally high returns -- about 17 percent annually in its largest fund -- by taking an unusually aggressive approach to investing and fund management, as detailed by a Reuters Special Report in April. (reut.rs/1TRovwx)

Nordlicht, Platinum's founding partner and chief investment officer, was arrested at his home in New Rochelle, New York. Federal prosecutors accused him and six others of participating in a pair of schemes to defraud investors.

[...] Capers added that the case was one of the largest and "most brazen" investment frauds ever and Platinum was ultimately exposed to have "no more value than a tarnished piece of cheap metal."

Also reported on by Bloomberg here.

Original Submission

 
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  • (Score: 2, Insightful) by Anonymous Coward on Wednesday December 21 2016, @12:40AM

    by Anonymous Coward on Wednesday December 21 2016, @12:40AM (#444142)

    > How hard can it be to investigate them before the everybody lose their shirts?

    It takes cash to do investigations. And the SEC has been deliberately starved of funding by wallstreet's lackeys in congress.

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  • (Score: 2) by Thexalon on Wednesday December 21 2016, @12:20PM

    by Thexalon (636) on Wednesday December 21 2016, @12:20PM (#444295)

    Also, the SEC is thoroughly corrupt. If an SEC officer gets close to having enough to bring criminal charges against any of the big players, then the company in question will offer them a really cushy do-nothing job as a means of stopping the investigation. They routinely rub elbows with the very people they're supposed to be regulating.

    The result is the bad guys are almost never caught. For instance, they were tipped off about Bernie Madoff years before he was actually caught.

    --
    The only thing that stops a bad guy with a compiler is a good guy with a compiler.