Fri, Jun 22, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Former hedge fund manager John Tausche gets four and a half years in prison for fraud

Tuesday, September 24, 2013

Precy Dumlao, Opalesque Asia:

Sixty-two year-old hedge fund manager John C. Tausche was sentenced to 4 ½ years in prison in a federal penal colony after he was found guilty of participating in a $311m scheme to defraud his investors.

A report by Philly.com said that Tausche and his co-accused, German national Helmut Keiner, ran the Oceanus Funds from his offices in Wichita, Kansas, and connived to convince investors that Keiner’s K1 hedge funds were making more money than they actually were.

Court records showed that Keiner funneled millions of dollars from K1 into Oceanus, which then returned the money to K1 to give the impression that the K1 hedge funds were expanding in asset size.

Barclays and Bear Stearns invested into the K1 funds; $82m and $137m respectively. Both banks lost all the money.

In its findings, the court determined that Tausche earned $114m from the scheme and ordered him to pay Barclays $115m in restitution.

Kiener has already been tried, convicted and jailed in Germany as a result of the scam, the paper says.

The Federal Bureau of Investigation in Philadelphia originally charged the two business associates with defrauding institutional investors and causing collective losses of more than $311m, on February 7th, 2013. According to the FBI’s ......................

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. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  2. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  3. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a

  4. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv

  5. British Empire: Pershing's 23% discount 'unsustainable'[more]

    From Citywire: The wide discount on Pershing Square Holdings (PSH) is 'unsustainable' and puts star hedge fund manager Bill Ackman under pressure, says British Empire (BTEM). Pershing is the third largest holding in the £850 million British Empire trust, managed by Joe Bauernfreund, which sp