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Francesco Rusciano – a timeline of hedge fund fraud

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)

About Aaron Wormus

Aaron Wormus works as the Managing Director of Website Creation at HedgeCo Networks and has worked with HedgeCo since the end of 2004. Prior to working with HedgeCo Networks, Aaron managed a private consulting firm based in Frankfurt, Germany. During this time he worked implementing back-end systems for clients ranging from telecommunications companies to mining companies and Silicon Valley software distributors. Aaron Wormus is a published author who has studied Information Technology and Journalism in Finland. His written work has been published in various technology magazines, translated into 5 European languages, as well as published book. Aaron regularly speaks at PHP Programming conferences, and is involved in the organization of his local technology user group.
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3 Responses to Francesco Rusciano – a timeline of hedge fund fraud

  1. John Hempton says:

    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

  2. John Hempton says:

    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

  3. Aaron Wormus says:

    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.

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