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Courthouse News Service – The founder and general partner of a $5 billion hedge fund used the company’s CFO as a scapegoat when investors found out he used their money to buy a private Gulfstream jet, the former CFO claims in Federal Court. Perry Gruss claims that Daniel Zwirn, of D.B. Zwirn and Co., told him he had to leave the company so Zwirn could remain ”pearly white” and ”bullet proof.”
Zwirn and Co. once managed more than $5 billion in assets. Gruss claims its founder began to live the life of an ”investment magnate,” including the private jet, ”scores of professional and personal assistants,” and a vacation home on the East End of Long Island.
New York (HedgeCo.Net) – R. Allen Stanford’s fate may be up in the air with a looming trial and the accusations of a major Ponzi scheme, but that didn’t stop him from opening up to ABC News cameras outside of a Houston restaurant.
In a short-lived but candid interview, Stanford went from aggressive to tearful while he denied the accusations being brought forth by the SEC.
When asked why he has being targeted, Stanford confidentially replied, “I think the government failed in their oversight, and I am the maverick, rich Texan they can put the moose head on the wall.”
Stanford was charged by the Securities and Exchange Commission on February 17 after allegedly orchestrating an $8 billion fraud centered around a CD program. His companies, which include Antigua-based Stanford International Bank, Stanford Group Company and Stanford Capital Management, were also named in the complaint.
“Stanford and the close circle of family and friends with whom he runs his businesses perpetrated a massive fraud based on false promises and fabricated historical return data to prey on investors," said the original complaint by the SEC.
“If it was a Ponzi scheme, why are they finding billions and billions of dollars all over the place?” Stanford asked. “I will die and go to hell if it’s a Ponzi scheme.”
The Texas billionaire, who has been knighted and dubbed “Sir Allen” in the Caribbean, says he expects to be indicted by a grand jury in a few weeks.
When asked if he lived frugally, Stanford replied, “I’ve always lived frugally. I flew around in a private jet and I had a boat, but I always lived frugally.”
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
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New York (HedgeCo.Net) – Obama used his time in front of Congress last night to present a “blueprint for our future,” with a specialized focus on health care, education and energy. But there was plenty of time for talk on the financial crisis, saying we have come to a “reckoning” after years of poor decision making and lax regulation.
"A surplus became an excuse to transfer wealth to the wealthy instead of an opportunity to invest in our future," the President said. “People bought homes they knew they couldn’t afford from banks and lenders who pushed those bad loans anyway. And all the while, critical debates and difficult decisions were put off for some other time on some other day."
Obama added, “I know how unpopular it is to be seen as helping banks right now, especially when everyone is suffering in part from their bad decisions. I promise you, I get it."
Obama said while he is in favor of lending a hand to large banks when needed, those institutions will be held accountable for how that money is spent. He also said he plans on launching new lending programs that will provide funding for college, small business and car loans.
Touching on the anger regarding CEO payouts and bonuses, Obama put to rest any further issues saying, “CEOs won’t be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet. Those days are over."
Obama also tried to restore confidence in the U.S. banking system by assuring the public that their money is safe in our financial institutions. To those same banks he said, “if we do not re-start lending in this country, our recovery will be choked off before it even begins."
Prior to his speech today, Gallup reported that Obama’s approval rating had dipped below 60 percent for the first time since the company started tracking it on January 21st. Gallup stated that his average approval rating was 64 percent, with most of the current decline coming from the Republicans.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@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! Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com
New York Post – The founders of a New York hedge fund at the center of the Bernard Madoff scandal have begun selling assets as their firm faces massive losses and a slew of lawsuits, sources told The Post.
Walter Noel and Jeffrey Tucker, co-founders of Fairfield Greenwich Group, a New York hedge fund that lost a whopping $7.5 billion to Madoff’s alleged Ponzi scheme, have been forced to curb their lavish lifestyles amid mounting doubts that the firm can survive the firestorm.
The pair recently dumped a shared interest in a Cessna 560XL private jet, according to a person close to the firm.
