{"id":4698,"date":"2006-07-10T00:00:00","date_gmt":"2006-07-10T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"investigation-into-emerging-threat-of-hedge-funds","status":"publish","type":"post","link":"https:\/\/www.hedgeco.net\/news\/07\/2006\/investigation-into-emerging-threat-of-hedge-funds.html","title":{"rendered":"Investigation into"},"content":{"rendered":"
WEST PALM BEACH, FL (HEDGECO.NET) – The head of the Bush administration\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s task force on corporate crime is taking a strong stance on hedge fund regulation and investigation. Deputy Attorney General Paul McNulty said the potential for fraud in the $1.2 trillion hedge-fund industry poses an \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cemerging threat.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d <\/p>\n

McNulty said, \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cWrongdoing in the lightly regulated investment pools makes them ripe for scrutiny by prosecutors, regulators and investigators. The corporate-fraud task force is also studying the scandal involving backdating stock options for executives.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d <\/p>\n

Hedge fund and stock options issues have become part of the Bush administration task force agenda. They will discuss hedge-fund fraud at its next meeting at the end of this month. McNulty said. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThere\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s been some interest in the media recently on hedge funds, and that would be a good example of an emerging threat that we would want to talk about and ensure that we are handling.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d <\/p>\n

Last month, a federal appeals court in Washington threw out SEC<\/span> rules requiring hedge funds to register with the agency and undergo inspections of their books and records. But McNulty said critics who say his unit should be shut down are wrong. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe corporate fraud task force is alive and well,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d McNulty said. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe need for it in our view is still very clear and strong.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d <\/p>\n

A federal judge last month ruled that the attorney-fee tactic violated the rights of former KPMG LLP<\/span> executives being tried on charges of selling illegal tax shelters. McNulty said he disagreed with the ruling. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cAs of today, that is the policy of the department and it will remain that way until we reach a decision that it should change in some way\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u00a6.We think the message has gotten out loud and clear, but that doesn\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2t mean we shouldn\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2t keep watching,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d he said. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThis ultimately is an environment that is enticing to those who are subject to excessive greed.\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2\u00c3\u00a2\u00e2\u201a\u00ac\u00cb\u0153 <\/p>\n

Along with McNulty, the task force has or will soon have several recent additions, including incoming Treasury Secretary Henry Paulson, SEC<\/span> Chairman Christopher Cox and Reuben Jeffery, chairman of the Commodity Futures Trading Commission. The group crafts policies on pursuing corporate crime and coordinates investigations. <\/p>\n

When the task force identifies an emerging threat, it usually will consider whether more regulation is needed and whether agencies investigating wrongdoing are properly coordinating their efforts and using their resources. <\/p>\n<\/div>\n

Alex Akesson
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net<\/p>\n

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!<\/p>\n

Be sure to check out our sister sites. www.hedgefundlounge.com<\/a>, www.hedgefundtools.com,<\/a><\/strong> and www.hedgefundemployment.com.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

WEST PALM BEACH, FL (HEDGECO.NET) – The head of the Bush administration\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s task force on corporate crime is taking a strong stance on hedge fund regulation and investigation. Deputy Attorney General Paul McNulty said the potential for fraud in the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4698","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4698"}],"version-history":[{"count":0,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4698\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}