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Aaron Wormus is the managing director of HedgeCo Networks, and part-time financial and technology blogger for Wormus.com.
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Alex Akesson is the author of Hedgefunds-Weblog.com, providing breaking news and interviews for the hedge fund industry.
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Peter J. de Marigny is Portfolio Manager of DITMo® Strategies, an Equity Hedge, Aggressive-Income Objective, Buy/Write Portfolio for an Aggressive-Income Objective used as an Enhanced Cash investment vehicle. Pj is also Head of Risk Alternative Strategies for Newport Beach, CA advisor Renovatio Asset Management. » View Peter J. de Marigny
Ryan Conner is Principal at HedgeCo Securities. As an experienced industry veteran, Ryan Conner offers his opinions on the hedge fund industry and hedge fund strategies.
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Rashida Fleet is involved with consulting and working with managers during the fund launch phase. Her work includes; interviewing managers, collecting information for the HedgeCo database and contributing to the HedgeCo News feed.
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Tim Seymour is co-founder and managing partner of Red Star Asset Management, as well as Chief Operating Officer of the $116 million Red Star Double Alpha Fund.
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Richard Heller Richard Heller is a partner at the New York City law firm of Thompson Hine LLP. His experience is in the formation of private offerings for hedge funds as well as the formation of registered broker-dealers and RIAs.
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Bret Rosenthal Principal of RCM, LLC, and founding partner of the Fortune's Favor Family of Funds.
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Cameron Hight, CFA, is an investment industry veteran with experience from both buy and sell-side firms, including CIBC, DLJ, Lehman Brothers and Afton Capital. He is currently the Founder and President of Alpha Theory™, a Portfolio Management Platform designed to give fundamental money managers the ability to create their own repeatable discipline to organize the complex process of portfolio management.
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    Francesco Rusciano – a timeline of hedge fund fraud

    Posted By Aaron Wormus, May 5th, 2009 : Permalink

    Of all the hedge fund fraud cases, Francesco Rusciano & the Ponta Negra funds, is probably the least interesting, except for one thing: the proximity to VP Joe Biden through Paradigm Global.

    Based on the information that is freely available online I’ve put together the timeline leading up to Francesco Rusciano arrest.

    • 1982: Born to Frank Louis Rusciano and Roberta Fiske-Rusciano
    • 2003: Writes paper on Brazilian “C” bonds for Cornell
    • 2003: Graduates from Cornell
    • 2003: Starts working for UBS handling Brazilian bond transactions
    • June 1, 2006. Rusciano resigns from UBS after the it was discovered that he had misreported his transactions.
    • February, 2007: Sets up Ponta Negra Group, LLC & Ponta Negra Fund I
    • August, 2008: Forged a statement which showed he had $43 million under management rather than $3 million.
    • February, 2009: Starts Ponta Negra Offshore Fund I
    • March 18, 2009: Bronte Capital breaks the story of Fraud at Ponta Negra Group
    • April 27, 2009: SEC freezes the assets of Ponta Negra Group
    • May 1st, 2009: Francesco Rusciano is arrested
    • May 4th, 2009: Francesco Rusciano is released to parents on 500,000 bond

    (PS: image from bronte capital blog)

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    Reader Comments:


    1. May 5th, 2009
      8:39 am

      That is right. This is dull.

      It was however interesting to try and prove it was a fraud whilst it was still operating. I did that for fun and games – and to see where it would lead me.

      Usually I do not bother reporting frauds. The SEC generally does nothing anyway.

      J
      - Comment by John Hempton


    2. May 5th, 2009
      8:42 am

      Also – I take it that you are aware that Hedgeco – your organisation – previously sued Jared Toren and Jeff Schneider – the two distributors of Ponta Negra – for theft of your database.

      You have a bet on this race – and you should probably be acting to protect your reputation.

      I have put the lawsuit here:

      http://www.scribd.com/doc/13371734/Toren-and-Schneider-Complaint
      - Comment by John Hempton


    3. May 5th, 2009
      9:05 am

      Hi John!

      Thanks for dropping by our site, we’re all big fans and appreciate the investigative work that you’ve been doing to uncover all the bits and pieces of this fraud. I wrote a more official article about your work at:

      http://www.hedgeco.net/news/05/2009/bronte-capital-exposes-rogue-hedge-fund-marketers-who-link-the-biden-family-to-hedge-fund-fraud.html

      This also mentions the legal action currently taking place between HedgeCo and Jared Toren and Jeff Schneider.
      - Comment by Aaron Wormus



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