[HOME ] [ABOUT] [PHOTOS] [VIDEO] [BLOG] [HOUSTON] [TEXAS] [U.S. NEWS] [WORLD NEWS] [SPORTS] [POP CULTURE] [CONTACT]
Fraudulent scheme of New York-based fund manager halted by SEC
by Joseph Earnest May 25, 2012
Newscast Media NEW YORK—The Securities and Exchange Commission today announced charges against a New York-based fund manager and his two firms for luring investors into a trading program that would purportedly maximize their profits but instead spent their money in unauthorized ways.
The SEC alleges that since at least November 2011, Jason J. Konior and his firms raised approximately $11 million by selling investors limited partnership interests in Absolute Fund LP, an investment vehicle that Konior claimed had $220 million in trading capital. Konior and his firms falsely claimed that Absolute Fund would allocate millions of dollars in matching investment funds, place the combined funds in brokerage accounts through which investors could trade securities, and operate a "first loss" trading program that would allow investors to dramatically increase their potential profits.
However, the SEC alleges that instead of using investor funds for trading purposes, Konior and his firms Absolute Fund Advisors (AFA) and Absolute Fund Management (AFM) siphoned off approximately $2 million of the proceeds to pay redemptions from earlier investors and to pay their personal and business expenses.
The SEC obtained an asset freeze against Konior and his companies late yesterday in federal court in Manhattan.
"Konior falsely portrayed Absolute Fund as a legitimate investment vehicle designed to maximize investors’ access to trading capital in order to grow their hedge fund businesses," said Bruce Karpati, Co-Chief of the SEC Enforcement Division’s Asset Management Unit. "In reality, Konior’s operation became a way for Konior to funnel cash to his firms and himself for unauthorized purposes."
The SEC alleges that Absolute Fund did not actually operate the first loss trading program as promised for these investors. Absolute Fund also did not provide these investors with any matching funds or satisfy investor demands for returns of their capital contribution. You may read or download the case here. (pop-up)
|
|
Join the Newscast Media social networks
for current events and multimedia content.
Copyright© Newscast Media. All Rights Reserved. Terms and Privacy Policy