Sun-Sentinel.com – A federal judge on Monday ordered the arrest of John Kim, head portfolio manager of collapsed West Palm Beach hedge fund firm KL Group, which is accused of defrauding investors ofmore than $200 million.
U.S. District Judge Kenneth Ryskamp in West Palm Beach ruled that Kim, 38, was in contempt of court for allegedly defying an asset freeze by spending money that is to be returned to investors.
Ryskamp cited Kim’s use of $384,658 from the sale of a home in South Korea, and $110,000 from selling his wife’s Mercedes SL series car and his Porsche 911.
“Kim’s inability to pay is unquestionably self-induced,” Ryskamp wrote in a bluntly worded decision. “Kim’s tactics essentially endorse violating asset freeze orders … and then pleading `inabilityto pay’ if anyone caught him.”
