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BNET – A hedge fund Ponzi scheme scandal is breaking in the blogosphere – and it goes right to the top of political power. A little while ago, blogger John Hempton, who writes Bronte Capital, a finance blog, started sniffing around Connecticut-based hedge fund Ponta Negra.
Hempton didn’t like what he found. After legal threats from the fund’s lawyers, Hempton retreated until a court ordered a freeze on the assets of Ponta Negra fund manager Francesco Rusciano amid allegations he lied to investors to raise more than $30 million. After that, the blogger published his findings.
The press has been agog recently about Paradigm Capital, a fund-of-hedge-funds run by members of Joe Biden’s family, and its apparent connection with a hedge fund shut by the SEC called Ponta Negra. CJR’s Audit column has the full details on this remarkable scoop by a finance blogger named John Hempton.
Among other things, Hempton was threatened by lawyers for Ponta Negra, forcing him to withdraw a post, as he detailed in a post yesterday.
Seeking Alpha – Zero Hedge is always happy to discover something rotten in the state of capital markets. We are even happier when others dig independently and come up with their own startling conclusions.
Last night, we were very happy. John Hempton, who writes the insightful blog Bronte Capital, has done some amazing dot connecting in what, if true, and not swept promptly under the carpet by the powers that be, could expose a hedge fund scandal that could rival the Madoff fiasco, for the simple reason that it implicates none other than Barak Obama’s right hand man: Joe Biden.
The fund in question is Paradigm Capital, a fund of funds, that is controlled by Hunter and James Biden, the VP’s son and brother, respectively.
