Hedge Fund News From HedgeCo.Net


Hedge Fund Fraudster Faces Up To 10 Years

HedgeCo.net (West Palm Beach) – ‘Hedge fund operator’ Rod Stringer has pleaded guilty to money laundering in a $14 million Ponzi scheme, federal prosecutors say.

He allegedly took money from 44 victims over 8 years, claiming to be "a day trader and hedge fund operator, although he was not a licensed securities broker," the U.S. Attorney’s Office said.

According to the Securities and Exchange Commission, Stringer doled out about half the money from the phoney Texas hedge fund to some victims, but kept $6.9 million for himself.

"He solicited and enticed individuals to invest money with him by making false representations and promises, such as: the return on investors’ money would be approximately 50% profit; he was a day trader and had a foolproof system; the return on investors’ money would be better than a savings account; the accounts were liquid and investors could withdraw their money anytime; and he had several computers that watched the trend line of stocks automatically and advised him when he should move money in and out of the market," a written statement from prosecutors said.

Stringer faces up to 10 years in prison, a $250,000 fine and restitution. The plea agreement calls for Stringer to forfeit more than $1.5 million, according to Courthouse News Service.

Alex Akesson

Editor for HedgeCo.net
alex@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

Related Posts Plugin for WordPress, Blogger...

About the HedgeCo News Team

The Hedge Fund News Team stays on top of breaking news in the Hedge Fund industry on an hourly basis. Signup to HedgeCo.Net to recieve Daily or Weekly news updates from our team.
This entry was posted in HedgeCo News and tagged , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Comments are closed.