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Reuters - Former American International Group Inc executive Joseph Cassano is under investigation by U.S. prosecutors for possibly misleading auditors and investors about subprime mortgage-related losses, according to a Bloomberg report citing people familiar with the probe.
The report said investigators are asking auditors at PricewaterhouseCoopers about memos they wrote last fall on how Cassano and other AIG executives valued contracts protecting $62 billion in mortgage-backed securities.
Newsday - A federal probe of the $1.8-billion collapse of Bear Stearns hedge funds has spread to include the activities of a number of banks and other lenders, according to court records and legal sources.
Investigators are also reviewing various private financial memorandums prepared by Bear Stearns officials for possible fraud against wealthy investors, said the sources.
One of the banks that may have been defrauded in the case was Barclays Bank PLC, the British institution that last year filed a federal lawsuit against Bear Stearns & Co. Inc. over losses from the hedge fund, said one attorney familiar with the case.
Federal prosecutors in Brooklyn are overseeing the Bear Stearns case while other Wall Street probes are being carried out by federal officials in Manhattan, said attorney Andrew Entwistle, who is representing investors suing the parent Bear Stearns Companies Inc. and affiliates.
West Palm Beach (HedgeCo.net)- William Galvin, Massachusetts’ top securities regulator has charged the hedge fund manager of the River Stream Fund with improperly soliciting investors.
The investigation also turned up a brokerage statement that showed the fund had $1,625 in its account in April. Regan had said he ran $15 million. The regulator said investors who entrusted their savings to Regan feared the money is now lost.
Investigators found River Stream client data thrown into a dumpster near an empty office where Regan said he worked. Wiliam Galvin, whose job includes protecting investors in Massachusetts, has waged aggressive campaigns against anyone caught trying to cheat investors.
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Reuters - Massachusetts’ top securities regulator on Monday charged a hedge fund manager, who promised to earn as much as 20 percent for his clients, with improperly soliciting investors.
William Galvin, the state’s secretary of the commonwealth, said Michael Regan did not check whether investors in his River Stream fund were wealthy enough to legally invest with him.
Galvin’s office also found documents that suggest most of the money clients entrusted to Regan may be lost.
Decades-old rules designed to protect less affluent investors from putting their savings into loosely regulated hedge funds require fund managers to make sure that all of their investors meet a minimum net-worth requirement.
Regan could not be reached for comment.
Investigators found River Stream client data thrown into a dumpster near an empty office where Regan said he worked.
The money manager wooed friends and social contacts with false Ivy League credentials and promises of healthy returns between 10 percent and 20 percent a year. He claimed to have an MBA in Finance from Columbia University which he did not earn, Galvin’s office said.