New York (HedgeCo.Net) – Approximately one month after being arrested for securities fraud and facing criminal charges through the FBI, Daniel Thibeault is now facing civil charges through the Securities and Exchange Commission.
Thibeault is accused of taking out approximately $16 million in fictitious loans from the GL Beyond Income Fund where he was the portfolio manager. The charges allege that money was directed to a separate company that Thibeault controlled, Taft Financial Services, as a means of diverting money out of the fund.
The theory is that Thibeault was using the money to keep his struggling GL Investment Services afloat and thus the registered investment adviser is named in the suit as well.
This story and others like it go to show how, from an investor’s point of view, you need to do your due diligence and you need your money held in a separately managed brokerage account.
Evan Rapoport, Founder & CEO of HedgeCo.Net, talks about how he is working to increase security of investor funds in his newly launched platform, HedgeCoVest. “Cases like these illustrate why we have chosen to structure HedgeCoVest using separately managed accounts. HedgeCoVest does due diligence on the managers on the platform, and when the investor chooses models to replicate, all the investors assets are held in their own brokerage account by an independent third party brokerage firm. By structuring investments in this way, investors can never be scammed like they were through the GL Beyond Income Fund.”
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