{"id":42362,"date":"2014-06-02T07:55:02","date_gmt":"2014-06-02T11:55:02","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=42362"},"modified":"2014-06-02T08:02:32","modified_gmt":"2014-06-02T12:02:32","slug":"chicago-based-hedge-fund-manager-caught-conducting-a-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/06\/2014\/chicago-based-hedge-fund-manager-caught-conducting-a-ponzi-scheme.html","title":{"rendered":"Chicago-Based Hedge Fund Manager Caught Conducting A Ponzi Scheme"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/05\/ponzi-scheme-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-22598\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/05\/ponzi-scheme-1-300x300.jpg\" alt=\"ponzi-scheme (1)\" width=\"300\" height=\"300\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/05\/ponzi-scheme-1-300x300.jpg 300w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/05\/ponzi-scheme-1-150x150.jpg 150w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/05\/ponzi-scheme-1.jpg 320w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>New York (HedgeCo.Net) &#8211; Chicago-based investment fund manager Neal V. Goyal\u00a0and two hedge fund advisers that he owned and controlled \u2013Blue Horizon Asset Management and Caldera Advisors \u2013 are being charged with violating the antifraud provisions of the Securities Act of 1933, Securities Exchange Act of 1934 and Rule 10b-5, and Investment Advisers Act of 1940.<\/p>\n<p>The SEC is seeking financial penalties, disgorgement of ill-gotten gains plus prejudgment interest, and a permanent injunction against Goyal, Blue Horizon Asset Management, and Caldera Advisors.<\/p>\n<p>In a parallel action, the U.S. Attorney\u2019s Office for the Northern District of Illinois today announced criminal charges against Goyal.<\/p>\n<p>\u201cFrom the beginning of his scheme, Goyal lied to investors and created fake account statements portraying positive trading returns in order to gain their trust and attract additional investments,\u201d said David Glockner, director of the SEC\u2019s Chicago Regional Office.\u00a0 \u201cGoyal\u2019s limited trading was unsuccessful, and he stole the vast majority of the money he raised.\u201d<\/p>\n<p>According to the SEC\u2019s complaint filed in federal court in Chicago, Goyal raised more than $11.4 million in the last several years for investments in four private funds that he managed and controlled.\u00a0 Goyal\u2019s investment strategy lost money from the outset, but he hid those losses from investors through the Ponzi payments and phony account statements.\u00a0 Meanwhile, Goyal misused investor funds to make down-payments and pay the mortgages on two homes he purchased.\u00a0 He also siphoned away investor money to invest in a Chicago tavern, fund two children\u2019s clothing boutiques that his wife operates in Chicago, and purchase artwork and lavish furniture.<\/p>\n<p>Alex Akesson<br \/>\nEditor for\u00a0<a style=\"color: #743399;\" title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><br \/>\n<a style=\"color: #743399;\" href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a style=\"color: #743399;\" title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a style=\"color: #ff4b33;\" 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 style=\"color: #743399;\" title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a style=\"color: #743399;\" title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; Chicago-based investment fund manager Neal V. Goyal\u00a0and two hedge fund advisers that he owned and controlled \u2013Blue Horizon Asset Management and Caldera Advisors \u2013 are being charged with violating the antifraud provisions of the Securities Act [&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-42362","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\/42362","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=42362"}],"version-history":[{"count":3,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42362\/revisions"}],"predecessor-version":[{"id":42375,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42362\/revisions\/42375"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=42362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=42362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=42362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}