Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
New York Times – The managing director of a collapsed Chicago hedge fund, Lake Shore Asset Management, was indicted by a federal grand jury. Prosecutors say the director, Philip J. Baker, operated a $300 million fraud.
The 27-count indictment was unsealed on Monday, said Patrick J. Fitzgerald, a United States attorney, in a statement on Tuesday. An arrest warrant has been issued for Mr. Baker, but his whereabouts are unknown, Mr. Fitzgerald said.
The Commodity Futures Trading Commission accused Mr. Baker in a civil lawsuit last year of having defrauded at least 700 investors by hiding trading losses. The commission won court orders banning Lake Shore from commodities trading.
Mr. Baker said that Lake Shore had a long history of trading success, though it lost about $38 million from 2002 to 2007, according to the indictment.
West Palm Beach (HedgeCo.net) – Wall Street’s highest-ranking woman, Erin Callan, was subpoenaed by a federal grand jury, along with 24 other Lehman executives regarding the collapse of Lehman Brothers, according to the New York Post.
Now in seclusion, the NYP says she taking a five-month personal leave. Callan joined Credit Suisse five months ago after being ousted as CFO of collapsed investment bank Lehman Brothers.
NYP excerpt: "At Lehman, Callan had been an admired public face of Lehman’s whirlwind dance with hedge fund chiefs, but then-CEO Dick Fuld blamed her for Lehman’s collapse, and pushed her out just months before the firm imploded, wiping out billions for investors and employees."
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!
Philadelphia Inquirer – A federal grand jury indicted an Indiana investment adviser Tuesday on charges of deliberately crashing his small airplane in the Florida Panhandle to try to fake his own death as part of a plan to escape financial ruin.
Authorities say Marcus Schrenker, 38, an amateur daredevil pilot and businessman, secretly parachuted to the ground before the crash and sped away on a motorcycle he had stashed away in central Alabama.
A three-day search came to an end on Jan. 13, when authorities finally caught up to Schrenker at a campground near Tallahassee, where they say he tried to take his own life by slashing one of his wrists.
