He Stole $100 Million From His Clients. Now He’s Living in Luxury on the Côte d’Azur
- Thread starter RedDuke
- Start date
Very nice article. HF management should be barred from having access to funds other than for trading etc. Mainly, no withdrawals other than fees and costs. That too, has to be conducted by a government body which issues the checks/wire transfers.
Far too many stories coming out regarding fund managers stealing and producing fake performance reports.
I think the bigger problem is putting all/most of their wealth in one HF. After all what are the chances that they are lucky enough to pick 3 ponzis???
I'm guessing you have no industry experience. "HF management" of name-brand reputable funds indeed has no "access to" client funds. The fund administrator handles cashflows, not the "HF management." No institutional investor would commit money to a fund that didn't have a top-tier, blue-chip administrator. As to "conducted by a government body," I don't even know where to begin...
True, also a key is who are the auditors. But in this case a "secrecy" was the main attraction for the investors, and they outsmarted themselves.
Bernie Madoff must of had a Cuban administering his cash flow. ???????
No industry experience here candidly. So how come fund managers are able to withdraw cash and make merry with client balances?
Who is being corrupt here and how are they able to be such? Never heard that fund administrator was roped in with the fund manager in the "loot the client" type of cases. Its almost always fund manager who becomes a "new bitch" in the jail.