Boston-Area Hedge Fund Accused of Fraud, Misuse of Investors’ Money

(Reuters) A small Boston-area hedge fund operation on Wednesday was accused of running a Ponzi scheme that included spending investor money on liquor, luxury hotels and specialty cars, according to a complaint by the top securities regulator in Massachusetts.Alleged victims of MC2 Capital of Cambridge, Massachusetts included an unnamed institutional investor from the Boston area that invested $2 million, according to Secretary of the Commonwealth William Galvin.

Galvin said he has moved to bar three MC2 Capital hedge funds and Yasuna Murakami, the man who operates them, from any securities business in the state. Galvin alleges Murakami operated the funds as Ponzi schemes while taking in about $15.3 million from at least 47 investors.

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