{"id":36967,"date":"2013-07-25T12:45:03","date_gmt":"2013-07-25T16:45:03","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=36967"},"modified":"2013-08-05T10:33:25","modified_gmt":"2013-08-05T14:33:25","slug":"cincinnati-hedge-fund-manager-accused-of-running-a-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/07\/2013\/cincinnati-hedge-fund-manager-accused-of-running-a-ponzi-scheme.html","title":{"rendered":"[Updated] Cincinnati Hedge Fund Manager Accused Of Running A Ponzi Scheme"},"content":{"rendered":"<div style=\"margin-bottom: 10px; padding: 5px; border: 1px dashed gray; font-size: 11px;\">\n[RETRACTION NOTICE] A previously published version of this article stated that Sarasota-based Aviance Capital Management served as a sub-advisor for Landmark Capital Management, Inc.<\/p>\n<p>While Aviance was listed a sub-advisor for LCM in 2008, <strong>Aviance ceased its sub-advisory role in 2008<\/strong> when the fund had approximately $10 million of assets. Aviance never had control or access to any fund assets.<\/p>\n<p>At all times during Aviance\u2019s association (over 5 years ago), the fund had:<\/p>\n<ul>\n<li>a well know Custodian <strong>Huntington National Bank<\/strong><\/li>\n<li>an Independent Registered Public Accountant \u2013 <strong>Briggs, Bunting &amp; Daughterly<\/strong><\/li>\n<li>a FINRA registered broker Dealer \u2013 <strong>United Financial Securities<\/strong><\/li>\n<li>an independent Administrator and transfer Agent- <strong>Unified Fund Services<\/strong><\/li>\n<\/ul>\n<p>Further:<\/p>\n<ul>\n<li>Aviance was chosen to be the sub-advisor by approval of the independent fund trustees.<\/li>\n<li>Aviance had no authority as to who was chosen as the independent trustees<\/li>\n<li>Aviance has never entered into nor had any contact with Galemmo or his company in any capacity<\/li>\n<\/ul>\n<\/div>\n<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2012\/12\/article-new_ehow_images_a06_bm_cc_report-tax-evasion-irs-800x800.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-33162\" alt=\"tax-evasion\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2012\/12\/article-new_ehow_images_a06_bm_cc_report-tax-evasion-irs-800x800.jpg\" width=\"152\" height=\"174\" \/><\/a>New York (HedgeCo.Net) &#8211; Cincinnati hedge fund manager\u00a0Glen Galemmo\u00a0has been accused in court filings of orchestrating a classic\u00a0Ponzi scheme\u00a0in which he used moneys from certain investors to pay &#8220;investment returns&#8221; to earlier investors.<\/p>\n<p>The scheme cost investors \u201ctens if not hundreds of millions of dollars,\u201d according to a lawsuit filed in Hamilton County Common Pleas Court,\u00a0the\u00a0<em>Cincinnati Business Courier<\/em>\u00a0reports.<\/p>\n<p>Law firm Dimond Kaplan &amp; Rothstein reported:\u00a0As part of his scheme, Galemmo reported double and triple-digit investment returns that are now believed to have been false. As just one example, from 2006 through 2011, Galemmo claimed investment returns totaling over 400%. It appears that those &#8220;returns&#8221; were greatly exaggerated.<\/p>\n<p>Galemmo and Queen City operated out of Cincinnati, Ohio, and many of those who invested with them and suffered losses live in the surrounding area. In addition, Galemmo may have maintained offices and solicited investors in Sarasota, Florida and its surrounding areas.<\/p>\n<p>On July 17, 2013, Galemmo e-mailed investors that Queen City no longer will be in operation. Galemmo further requested that investors not visit Queen City&#8217;s Cincinnati, Ohio office, and that any inquiries should be directed to the Internal Revenue Service. On information and belief, the federal government already had raided Queen City&#8217;s office and seized all of Queen City&#8217;s assets.<\/p>\n<p>Galemmo was a trustee to the LCM Landmark Series Trust (the &#8220;Trust&#8221;). Two LCM Landmark Funds (the &#8220;Funds&#8221;) were organized under the Trust. The investment advisor\u00a0to the Funds was Landmark Capital Management, Inc.<\/p>\n<p>Plaintiffs in the case are organized into two trusts \u2014 Galemmo Victims Fund I and Galemmo Victims Fund II. Their attorney,\u00a0Brian O\u2019Connor\u00a0of Cincinnati law firm\u00a0Santen &amp; Hughes, declined comment. Galemmo couldn\u2019t be reached for comment and neither could his attorney.<\/p>\n<p>Alex Akesson<br \/>\nEditor for\u00a0<a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\/\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[RETRACTION NOTICE] A previously published version of this article stated that Sarasota-based Aviance Capital Management served as a sub-advisor for Landmark Capital Management, Inc. While Aviance was listed a sub-advisor for LCM in 2008, Aviance ceased its sub-advisory role in [&hellip;]<\/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-36967","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\/36967","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=36967"}],"version-history":[{"count":16,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/36967\/revisions"}],"predecessor-version":[{"id":36970,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/36967\/revisions\/36970"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=36967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=36967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=36967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}