Bright Shiny Objects, all that Glitters isn’t Gold May17

Posted by & filed under Fraud.

No doubt all of us at one time or another are swayed by appearances, if we are honest with ourselves.  Only later do we discover that this suspension of disbelief has hurt our results.  Let me state upfront that this happened to us in our relative youth, and share what we learned from it.  No bona fide excuses, we fell into this trap in the early 2000’s with a small investment in Bayou Fund.  Notwithstanding the size, it was painful, dumb and avoidable

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SEC Cracks Down on Fraudulent ICOs in Latest Enforcement Action Oct13

Posted by & filed under Fraud, Regulatory, Technology.

Two initial coin offerings (ICOs) were the target of a Securities and Exchange Commission (SEC) enforcement action filed on September 29. Based on the SEC’s descriptions, both ICOs, on their face, appear to be frauds, with marketing materials that allegedly contained multiple misleading and fraudulent statements. For those in the investment management space and those who personally participate in ICOs, this enforcement action serves as a reminder that due diligence is a necessary step before making an investment. Essentially, the two ICOs in question provide a roadmap of exactly how not to conduct an ICO

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Financial Fraud Watch: Sentinel Growth Fund Management Feb3

Posted by & filed under Fraud.

On Thursday, the SEC charged Mark J. Varacchi and his Connecticut-based Sentinel Growth Fund Management with stealing money from investors. Varacchi and Sentinel promised their investors’ money was being routed to up-and-coming hedge fund managers. But instead, from 2013 to 2016, Varacchi and Sentinel diverted investor funds, held it in separately managed accounts, and made unauthorized withdrawals of their clients’ money, stealing at least $3.95 million

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