CNBC guest Busted!

I'm confused about something. According to his website, he was doing managed futures which means the funds were held in client accounts. How did he perpetuate this fraud?

I see he got his start with Heartland Securities. They were a big daytrading firm in the 90's.

BRIAN KIM

Brian Kim, the founder and managing member of the General Partner and the Management Company, began his career as a proprietary trader in 1997 at Heartland Securities, a privately-held equity trading firm in New York. As an equity trader, he managed customer accounts utilizing the firm’s proprietary trading technology and methodology. In 1999, he joined First Security Investments, Inc. as a portfolio manager. In this role, Kim applied his knowledge of proprietary trading and portfolio management to customize private client portfolios. Since 2002, Kim has been developing Liquid Capital’s Investment strategies and platforms. He received his B.A. in Economics from Dartmouth College in 1997.
 
What the hell? This guy lists Rothstein Kass as his auditor. I'm paying the same firm a heavy premium for credibility... How the hell did they enable this fraud? I'm definitely querying the principal at RKCO about this.

Anyone have access to SEC or CFTC filings on this?
 
My principle at Rothstein Kass would only say "they never had an audit relationship with this guy". Reading between the lines, they provided some sort of accounting/tax advice, but not audit.

Pretty scary from an investor point of view. If you look at his firms' website, he still has Sep 2010 (!) BarclayHedge badge up there. Certainly looks legit, who would've known he was running a ponzi.
 
Quote from Maverick74:

http://www.nydailynews.com/news/ny_...rator_at_heart_of_4_million_ponzi_scheme.html

alg_brian_kim.jpg


If you see this guy, get him!
More...

They all look alike to me.
 
Today's New York Magazine blurb on Brian Kim:

http://nymag.com/daily/intel/2011/02/hedge_fund_ponzi_schemer_has_s.html

"Fugitive hedge-fund manager Brian Kim, the 35-year-old founder of Liquid Capital Management, is thought to be on the lam in Italy to avoid charges for running a $4 million Ponzi scheme. But while Kim, who leveraged two CNBC appearances to bilk gullible investors, was still living in his East Village high-rise, what he chose to do with those ill-gotten gains was surprisingly pedestrian. According to the New York Post, he "allegedly used some of the purloined loot to finance luxury shopping sprees to Barneys New York and Coach and to fuel gambling runs to Atlantic City and ski trips to Vermont." Atlantic City and Vermont? If he were a real "mini-Madoff" like the paper says, that should be Vegas and Aspen. Next you'll be telling us he took the senior bus to AC for the free drinks and complimentary show tickets. We're just saying, instead of checking Italy, the police might want to station someone at the Air Supply show at Ballys on Saturday."
 
Rothstein Kass as his auditor.
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I doubt they did his auditing.

Rothstein Kass is a solid firm with integrity and professionalism.

He probably just listed them due to their Reputation. I doubt any of the investors called them up to verify.

To be honest, none of my investors call up my lawyers or my auditing firm to inquire about our Private Equity Firm. If the pitch is good enough....and you can build trust, many "Accredited" investors take your word for it.

I know it sounds crazy but at least in my world that is how it works.

They also send hundreds of thousands of dollars across 8 state lines to invest and you have to force them to fly down and meet you.

I'm not sure how many on ET deal with Accredited Investors but the ones who love to "Invest" and love big upside, are gamblers and they play with money they can afford to loose.

Once you build trust and a relationship....they take the leap of faith.

This is just the game of "Raising" money. The bad side is that people like the ass clown on this post take, advantage of the trust.

I vote for public execution when these guys are caught. But, hey I have a biased reasoning.
 
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