Karen the Super Trader

  • Thread starter Thread starter JBuck
  • Start date Start date
MKTrader said:
So did Karen intentionally fraud people
More...

Well, as lots of HF manager/ponzi runner she started out with good intentions then when the market didn't go the right way, it was easier to cook the books than coming clean. So I guess cooking the books was intentional.

Also the set up of her fund was fairly unusual, that is why she was able to keep losses out of investors' eyes.
 
Pekelo said:
Well, as lots of HF manager/ponzi runner she started out with good intentions then when the market didn't go the right way, it was easier to cook the books than coming clean. So I guess cooking the books was intentional.

Also the set up of her fund was fairly unusual, that is why she was able to keep losses out of investors' eyes.
More...

Of course people loved the story....the retired accountant grandma who figured out how to beat Wall Street...like your other post said, it sounds like the plot of a feel-good movie.
 
MKTrader said:
So did Karen intentionally fraud people
More...

Apparently so. If you read the SEC's decisions regarding the case you'll note that the word fraud appears numerous times. And, in the initial decsion in 2019 Ms. Bruton "...consented to entry by the district court of a final judgment against her. The judgment ordered Bruton to pay disgorgement and civil monetary penalties. It also permanently enjoined her from future violations of Advisers Act Sections 206(1), (2) and (4) and Rule 206(4)-8 thereunder."

In civil law Disgorgement is repayment of ill-gotten gains that is imposed on wrongdoers by the courts. Funds that were received through illegal or unethical business transactions are disgorged, or paid back, with interest to those affected by the action. Disgorgement is a remedial civil action, rather than punitive civil action.

In the end she and Hope Advisors paid back millions in ill gotten gains. If you carefully read some of the SEC's documents you'll see that her intent was fraudulent. At least that's how I read the words.

Here are links to some of the relevant documents;

ORDER DENYING PETITION TO LIFT TEMPORARY SUSPENSION AND DIRECTING HEARING
https://www.sec.gov/litigation/opinions/2018/34-84627.pdf

Initial Decision barring Karen Bruton from the securities industry
https://www.sec.gov/alj/aljdec/2019/id1386cff.pdf

NOTICE THAT INITIAL DECISION HAS BECOME FINAL
https://www.sec.gov/alj/aljdec/2019/ia-5419.pdf

Best

J Buck
 
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