{"id":37619,"date":"2013-08-23T12:04:46","date_gmt":"2013-08-23T16:04:46","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=37619"},"modified":"2013-08-23T12:17:53","modified_gmt":"2013-08-23T16:17:53","slug":"hedge-fund-adviser-under-fire-for-faking-algorithmic-currency-trading","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/08\/2013\/hedge-fund-adviser-under-fire-for-faking-algorithmic-currency-trading.html","title":{"rendered":"Hedge Fund Adviser Under Fire For Faking Algorithmic Currency Trading"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2013\/08\/btl_function.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright  wp-image-37622\" alt=\"btl_function\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2013\/08\/btl_function-300x260.jpg\" width=\"240\" height=\"208\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2013\/08\/btl_function-300x260.jpg 300w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2013\/08\/btl_function.jpg 306w\" sizes=\"auto, (max-width: 240px) 100vw, 240px\" \/><\/a>New York (HedgeCo.Net) &#8211; A North Carolina-based investment adviser and its former owner are being looked at by the SEC after they were accused of misleading an investment fund\u2019s board of directors in\u00a0order to get approval to manage their fund.<\/p>\n<p>Hedge fund adviser Chariot Advisors LLC. said that they would use algorithmic currency trading as their main strategy, but after launching they instead\u00a0hired an individual trader who was allowed to use his own discretion on trade selection and execution.<\/p>\n<p>&#8220;Chariot Advisors and Elliott L. Shifman misled the fund\u2019s board about the nature, extent, and quality of services that the firm could provide as he touted the competitive benefits of algorithmic trading in two presentations before the board.&#8221; The SEC said in a press release yesterday. &#8220;Contrary to what Shifman told the directors, Chariot Advisors did not devise or otherwise possess any algorithms capable of engaging in the currency trading that Shifman was describing.&#8221;<\/p>\n<p>Other cases highlighting misconduct in the investment contract renewal process include cases against\u00a0Morgan Stanley Investment Management,\u00a0a sub-adviser to the Malaysia Fund, and\u00a0two mutual fund trusts affiliated with the Northern Lights Variable Trust fund complex.<\/p>\n<p>\u201cIt is critical that investment advisers provide truthful information to the directors of the registered funds they advise,\u201d said Julie M. Riewe, Co-Chief of SEC Enforcement Division\u2019s Asset Management Unit.\u00a0 \u201cBoth boards and advisers have fiduciary duties that must be fulfilled to ensure that a fund\u2019s investors are not harmed.\u201d<\/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<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; A North Carolina-based investment adviser and its former owner are being looked at by the SEC after they were accused of misleading an investment fund\u2019s board of directors in\u00a0order to get approval to manage their fund. [&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-37619","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\/37619","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=37619"}],"version-history":[{"count":6,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/37619\/revisions"}],"predecessor-version":[{"id":37621,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/37619\/revisions\/37621"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=37619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=37619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=37619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}