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Yet More Hedge Fund Fraud

This article was written by in Investing. 6 comments.

The bad news for the hedge fund industry just keeps coming.

[Kirk] Wright is on the lam after federal officials charged him with fraud, claiming he sent statements saying that his funds, managed by Atlanta-based International Management Associates, had over $150 million invested when the accounts in question held only $150,000 — about the only money the SEC has been able to find in the funds.

hedge fraud-cnn

Hedge funds used to be a great place to invest if you had billions of dollars to manage, like a University. I hope that investment managers at these institutions were smart enough to get out of any dangerous hedge funds at the right time.

Updated January 16, 2010 and originally published April 3, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 3 comments… read them below or add one }

avatar Ryan

I like hedge funds in that they provide a lot of volatility to individual stocks and its easy to short their “pumps.”

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avatar Jack Payne

Investing in everything from owning whole corporations at one extreme, to day trading the stock market at the other–and just about everything else in between, with no supervision.

Too inviting a working climate for con men. As an investment vehicle for me, no thanks.

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avatar Joe

Even retirement funds are being sucked into the black hole of fraudulent hedge funds, sometimes in cahoots with legitimate IRA custodial institutions. It’s a disgrace to the US financial system and probably explains why the rest of the world is hesitant to beleive or trust US financial markets.

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