Hedge Fund Lawyers

If ever there was an argument in favor of the ban on advertising on hedge funds to be removed, there is one. Over three years, a group of artists from New York brazen scam raised 30 million dollars from unsuspecting investors by posing as managers of a hedge fund success, then fled with the loot.

Investments of $ 5,000 to $ 500,000 were obtained from university professors and educated professionals. It took the group a little over three years, from early 2003 to September 2006 increased $ 30 million.

A grand jury empaneled by Michael J. Garcia, the United States Attorney in Manhattan, had handed a sealed indictment in the case, according to a lawyer hired by 10 of the victims, who said that the FBI was investigating the matter.

Criminals are clearly to blame here, however, there is a problem which, in our opinion, is due in part, by the regulators themselves.

It is a scam out there which is based on "Prime Bank Guarantees" or "Medium Term Notes" which took billions from investors by promising them astronomical returns. The website of the SEC wrote:

"Attracted by the promise of huge profits and the chance to be part of an exclusive, the international investment program, investors are again plagued by false" prime bank "scams. These scams involve the alleged issuance the market or using so called "premium" of the Bank, "prime" the European Bank or "premium" World Bank financial instruments, or other "investment programs high yield" (" HYIP "s). The fraudsters who promote these programs often use the word" premium "- a synonym or phrase, as" the world's largest banks fifty "- to hide their programs with an air of legitimacy. "

The only thing that allows brokers to false "and investment managers to operate this fraud is that they created a veil of secrecy over the entire operation. The SEC wrote:

"Proponents claim that transactions must be kept strictly confidential by all parties, making client references available. They may characterize the transactions as the best kept secret in the banking sector, and assert that, if asked, the bank and of regulatory officials would deny knowledge of such instruments. Investors may be asked to sign nondisclosure agreements. "

This "secret" is perpetuating the fraud. In other words, the peddlers of this system will tell you that when you do your research you will find everyone denies the existence of the regime. They say that those not in the industry do not know about this because there would be outrage that rich people could make so much money and those in the industry can deny, either because they are not high enough or try to keep completely secret. They will also tell you that for a minimum investment of $ 10mn is the norm, but they are separated only $ 10mn to allow their investors in.

That secret is the perfect cover, and I speak from personal experience, 15 years ago as a puppy investment, to my eternal shame, I am caught in a scam as well.

We have an "investment" that is supposed to be super secret, has a minimum investment and is not advertised anywhere. Do elements of this ring bells?

In other words, the regulators are perpetuating the secrecy "of hedge funds do not allow advertising funds. Their rules about only being able to invest a certain sum of money does not protect the people in this business which has invested $ 5,000, he has done? Something tells me the scammers have not checked to see what the net worth investors have been either.

How the money on advertising would have helped? As with anything, the fact that advertising is allowed generates an awareness of a particular sector. How many of you knew how to play poker online casino plastered the web with advertising? My limit was "Snap", now I'm a poker shark stone cold.

By the very nature of advertising.