Two Arrested In $20 Million Hedge Fund Fraud Scheme

New York (HedgeCo.net) – New York Federal prosecutors have charged two more hedge fund hedge fund managers with fraud, according to Courthouse News Services.

The 4-count indictment says that two New Jersey hedge fund managers, William Shternfeld and Benjamin Koifman, shipped $18 million in ill gotten gains to the Ukraine after taking $20 million for nonexistent investments of the A.R. Capital Globe Fund.

Shternfeld and Koikmanare alleged to have concealed their identities using names other than their own and distributed inflated annual returns to investors in order to coerce investors to place more money into the ARC Global Fund, the FBI said.

Alex Akesson
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