Sun, May 28, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

SEC halts fraudulent investment scheme by New York-based fund manager

Monday, May 28, 2012

Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has halted a fraudulent investment scheme being run by Jason J. Konior and his two firms. The SEC alleges that since at least November 2011, the two firms raised approximately $11 million by selling investors limited partnership interests in Absolute Fund LP. Investors would then be able to take advantage of matched funds and a "first loss" trading program. Instead, Konior siphoned off approximately $2 million of the proceeds to pay redemptions from earlier investors and to pay their personal and business expenses.

Konior's personal and business assets have been frozen by the SEC after it brought charges in court yesterday. According to the complaint, Konior represented that the fund would allocate capital up to nine times the amount of the investors original contribution; place the combined funds in a sub-account at a broker-dealer through which the investor could trade securities; and allocate any trading losses first to the investor’s contribution amount, and then any trading profits would be shared between Absolute Fund and the investor.

In reality, Konior never operated this type of trading program or provided matching funds. Redemptions requested by investors were also never paid out. Konior agreed to having his personal and business assets frozen and an injunction placed against his tradi......................

To view our full article Click here

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. Soon hedge fund investors won't bet on a man, they will bet on a machine[more]

    From Forexlive.com: The Wall Street Journal is in the midst of a 17-part series that looks at the rise of quant funds. The AUM and money invested in quant funds still trails traditional asset managers but the gap is closing. What's truly amazing is volume. Quant funds make up 27% of trading vo

  2. Investing - China's HNA wants to invest in Value Partners, Risk parity investors reap rewards from rebalancing act, SoftBank's $100 billion tech fund rankles VCs as valuations soar[more]

    China's HNA wants to invest in Value Partners From Reuters.com: HNA Group has alighted on a logical, if pricey, target in Hong Kong. The deal-hungry Chinese travel conglomerate known for overpaying wants to invest in Value Partners, one of Asia's few sizeable independent asset managers,

  3. Opalesque Exclusive: Investors warm to ESG, but seek standardization[more]

    Bailey McCann, Opalesque New York: Asset managers and asset owners plan to double their investment in Environmental, Social and Governance (ESG) driven strategies over the next two years, according to a survey from BNP Paribas Securities Services. The report, "Great Expectations: ESG - what's nex

  4. Opalesque Roundtable: France's hidden strengths in AI and machine learning[more]

    Komfie Manalo, Opalesque Asia: All nations offer their strengths and weaknesses, but one that is undisputed is the quality of the French scientists, claimed Guillaume Vidal, co-founder of French technology startup Walnut Algorithms at the

  5. AI-based hedge fund brings machine learning investing to masses[more]

    Komfie Manalo, Opalesque Asia: Machine learning-based hedge fund firm Greyfeather Capital is trying to bring artificial intelligence investing to the masses with its plan to expand beyond the limited reach of the alternative investments space. "We're excited to bring AI technology to traditio