“Instead of investing the money as promised, Hu “converted that money for his own personal use and for other non-investment purposes,” according to an indictment.” Bloomberg reports.
A federal jury in June convicted Hu of seven fraud charges, siding with prosecutors who argued he orchestrated the scheme over a seven-year period through several Sunnyvale-based hedge funds.
“Hu enlisted well-heeled clients (particularly from the Chinese community) by assuring them his hedge funds, Asenqua Beta Fund and Fireside LS Fund, were affiliated with reputable lawyers and auditors and promising investment returns of 20 to 30 percent.” Mercury News reported.
Arrested in Hong Kong in 2009 after fleeing the country, Hu also faces an SEC civil lawsuit.
Editing by Alex Akesson
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