{"id":23681,"date":"2011-07-25T07:29:13","date_gmt":"2011-07-25T11:29:13","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=23681"},"modified":"2011-07-25T08:02:22","modified_gmt":"2011-07-25T12:02:22","slug":"jail-time-7-hedge-fund-convictions-over-the-weekend","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/07\/2011\/jail-time-7-hedge-fund-convictions-over-the-weekend.html","title":{"rendered":"Jail Time: 7 Hedge Fund Convictions Over The Weekend"},"content":{"rendered":"

\"\"<\/a>New York (HedgeCo.net) – Over the weekend there were hedge fund fraud related\u00a0convictions\u00a0in the US, Australia and Germany. All were\u00a0sentenced\u00a0to serious jail time.<\/p>\n

US:<\/strong> Five employees for\u00a0hedge fund manager A&O Resource Management Ltd were sentenced for their part in a $100 million fraud scheme.<\/p>\n

\u201cBrent Oncale (the founder) and his co-conspirators operated a sham investment company that turned fraud and deceit into a business model,\u201d said Assistant Attorney General Breuer. \u201cThey stole millions from hundreds of unsuspecting investors, pocketing huge sums for themselves.”<\/p>\n

Russell E. Mackert, 52, general counsel for A&O, was sentenced to 188 months in prison; Brent Oncale, 36, former owner and founder of A&O, was sentenced to 120 months in prison; David White, 41, the former president of A&O, was sentenced to 60 months in prison; Eric M. Kurz, 47, a wholesaler of A&O investment products, was sentenced to 60 months in prison; and Tomme Bromseth, 69, an A&O sales agent in the Richmond area, was sentenced to 36 months in prison.<\/p>\n

Australia: <\/strong>A New South Wales Supreme Court has convicted Shawn Richard of\u00a0Astarra Asset Management with fraud, insisting on up to 5 years of jail time, the\u00a0sentencing\u00a0is scheduled for the\u00a012 August.<\/p>\n

The Australian Securities and Investments Commission\u00a0alleged that the hedge fund manager was placing investor monies in overseas hedge funds, in circumstances where he would personally receive a significant portion of the money.<\/p>\n

“The monies Richard placed in the overseas hedge funds had been raised by the responsible entity of ASF, Trio Capital Limited (Trio).” The\u00a0ASIC said, “Richard \u00a0received in excess of $6.4 million in undisclosed payments.”<\/p>\n

EU: <\/strong>Helmut Kiener, the founder of 345-million euro ($497 million) hedge fund\u00a0K1 Group, was\u00a0\u00a0sentenced to 10 years and eight months in prison. \u00a0The\u00a0“Mini Madoff”\u00a0was found guilty of fraud, forgery and\u00a0tax evasion by a court in Germany.<\/p>\n

Also\u00a0sentenced\u00a0last week:<\/strong> Danielle Chiesi was sentenced to 30 months in federal prison for securities fraud.<\/p>\n

New names in the Petters Ponzi: <\/strong>Frank Elroy Vennes, Jr., a business associate of and primary fundraiser for Thomas J. Petters was named in a\u00a0superseding indictment last week, the indictment\u00a0also charges James Nathan Fry, age 57, of Orono, Minnesota, with five counts of securities fraud, four counts of wire fraud, and three counts of making a false statement to the United States Securities and Exchange Commission during its investigation of investments in PCI by hedge funds under the management of Fry\u2019s company, Arrowhead Capital Management.<\/p>\n

Alex Akesson
\nEditor for HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a> is a premier hedge fund database<\/a> and community for qualified and accredited investors only. Membership in HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.net) – Over the weekend there were hedge fund fraud related\u00a0convictions\u00a0in the US, Australia and Germany. All were\u00a0sentenced\u00a0to serious jail time. US: Five employees for\u00a0hedge fund manager A&O Resource Management Ltd were sentenced for their part in a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-23681","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/23681","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=23681"}],"version-history":[{"count":7,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/23681\/revisions"}],"predecessor-version":[{"id":38553,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/23681\/revisions\/38553"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=23681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=23681"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=23681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}