Kansas City infoZine – The SEC’s complaint, filed in U.S. District Court for the District of Minnesota, alleges that Gregory Bell and Lancelot Management LLC invested more than $2 billion in hedge funds assets with Petters and pocketed millions of dollars in fraudulent fees at the expense of investors in the funds.

The SEC’s complaint also charges Petters with fraud for perpetrating the massive Ponzi scheme through the sale of notes related to consumer electronics. When Petters’s scheme began to unravel, Bell participated in a series of sham transactions to conceal that Petters owed more than $130 million in investor payments on the notes.

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Tags: assets, consumer electronics, fraud, hedge funds, investor, investors, kansas city infozine, lancelot, ponzi scheme, sham

Bloomberg – Former Democratic political adviser Hank Morris and New York State Deputy Comptroller David Loglisci may hold the keys as authorities examine whether private equity firms and hedge funds knowingly paid kickbacks to manage state pension money.

The pair, accused of orchestrating the alleged pay-to-play scheme, is in the best position to explain what firms including Carlyle Group and Quadrangle Group LLC were told while allegedly being led to dole out sham finders fees between 2003 and 2007, attorneys who represent investment advisers said. Both men have said they will fight the state and federal claims.

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Tags: attorneys, authorities, carlyle-group, david loglisci, deputy comptroller, investment advisers, kickbacks, new-york-state, pension money, political adviser, private equity firms, quadrangle group llc, sham, state deputy, state pension

New York (HedgeCo.Net) – Investors in South Florida are fearing the worst, with all eyes turned to Michael Riolo, a Boca Raton resident who may have bilked over $50 million out of investors.

Riolo regularly distributed performance reports to his investors showing admirable returns.  Now, three investors are claiming that it was all a sham.  Donald Gory, Anthony Leonardo and Nicholas Gory of Broward County have filed a suit against Riolo, claiming he stole more than $1 million from them. 

According to the suit, Riolo allegedly conducted a “Madoff-like Ponzi scheme” through his two companies, LaSalle International Clearing Corp. and Sterling Wentworth Currency Group.  The investors said they were recently informed that the firms had become insolvent.  They are asking the judge to freeze his assets and ban him from transferring any funds.

It seems that wealthy Florida residents have been hit hard by financial scams in recent months.  Bernard Madoff, the infamous Ponzi-schemer who lost $50 billion of investor’s money, was a part-time Palm Beach resident who garnered the trust and money of many elite Floridians.

Money manager Arthur Nadel of Sarasota is still missing, along with $350 million, after being exposed as a fraud in what authorities are now dubbing the “mini-Madoff.”

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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Tags: 50-million, accredited-investors, bernard madoff, boca raton, broward county, florida residents, floridians, hedgeco, lasalle, money manager, nadel, palm-beach, performance-reports, riolo, schemer, sham, sister-sites, wentworth