Sat, Apr 19, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund founder Brian Kim gets 15 years for Ponzi scheme

Monday, April 23, 2012

Bailey McCann, Opalesque New York: Brian Kim, founder of the now defunct hedge fund Liquid Capital Management, was sentenced to 15 years in prison by New York Supreme Court Judge, Charles H. Solomon, today after being convicted of charges that his fund was really a Ponzi scheme. He was convicted of sending monthly statements to investors showing that their accounts had inflated gains, according to prosecutors in the case.

He also pleaded guilty to stealing $435,000. Kim fled to Hong Kong on the eve of his trial but was caught and returned to New York 10 months later. According to the ruling, Kim will serve a five-to-15 year sentence in state prison but will remain in federal prison for another seven months, on an earlier passport fraud conviction related to his escape to Hong Kong. According to an account in BusinessWeek Kim used investor money to fund lavish shopping trips, travel and lifestyle expenses.

An account in Advanced Trading notes that Kim told the judge that when he is released he hopes to find gainful employment and repay all of his victims. Kim told investors that he was putting their money into stable investments and instead put investors funds into highly speculative futures contracts causing massive losses without their knowledge and ......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably