New York (HedgeCo.net) – Hedge fund manager Guy Albert de Chimay was arrested during the weekend in North Carolina and charged with securities fraud.
Chimay, who claimed he was directly related to Belgian royalty (of the Chimay brewed by Trappist monks) is being accused of allegedly stealing $6 million from high net worth and institutional investors. He has been charged by the SEC with using a bridge-loan facility he had set up in order to run a multi-million-dollar Ponzi scheme, according to New York Magazine.
The SEC said: “There is no evidence that any bridge loans were actually made, and investments were instead used to make mortgage payments on Chimay’s multi-million dollar home in the Hamptons and pay more than $500,000 to the law firm representing Chimay in a divorce proceeding.”
“Investor money also was fraudulently used to pay Chimay’s massive credit card bills as well as Chimay Capital’s rent and payroll, and to pay off disgruntled counterparties in Chimay’s other business ventures. As recently as December 2009, Chimay sought a multi-million dollar bank loan on the basis of false representations that he had $13 million in liquid assets in a Bermuda bank account. The account balance was actually zero,” the SEC alleged.
Alex Akesson
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