{"id":5668,"date":"2007-02-13T00:00:00","date_gmt":"2007-02-13T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-fund-head-ordered-to-pay-back-20-million","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/02\/2007\/hedge-fund-head-ordered-to-pay-back-20-million.html","title":{"rendered":"Hedge Fund Head Ordered to Pay Back $20 Million"},"content":{"rendered":"<p><span class=\"copy\">HedgeCo.Net (New York) &#8211;<\/span> The SEC released the details of the fines U.S. District Court Judge Charles Pannell ordered against hedge fund manager Kirk Wright yesterday.Pannell ordered nearly $20 million in fines and penalties for defrauding investors through his hedge fund, International Management Associates LLC.<\/p>\n<p>  The judge entered a default judgment against Wright ordering the repayment of $17 million, interest of $2.7 million and an imposed a civil penalty of $120,000, the SEC said in the statement.<\/p>\n<p>  Wright&#8217;s hedge fund came under scrutiny eventually for it&#8217;s unusually consistent high returns, vague descriptions of investment strategies, aggressive marketing, no auditing, and secretive behavior  by the manager.<\/p>\n<p>  From 1997 through early 2006, Wright raised as much as $185 million from 500 investors through a &#8220;fraudulent scheme&#8221; involving seven hedge funds that he managed through IMA, the SEC said in a  lawsuit filed a year ago.<\/p>\n<p>  Wright was also spending too much for his funds, it was noted, a lavish wedding reception, the $55,000 engagement ring his bride wore, the entertainment suites at Atlanta Falcon football games,  Atlanta Hawk basketball games, concerts, a Bentley, a Jaguar, an Aston Martin, a BMW, and a Lamborghini, and as proof of his investment returns, only photocopied spreadsheets. The firm also sent  out quarterly statements misrepresenting the amount of money in those funds and their performance.<\/p>\n<p>Wright was arrested in May on mail-fraud charges, He&#8217;s in an Atlanta detention center awaiting a criminal trial related to the 21 counts of mail fraud and three counts of securities fraud, eachcarrying a maximum sentence of 20 years behind bars.<\/p>\n<p align=\"left\">  Alex Akesson<br \/>  Contributing Writer<br \/>  HedgeCo.Net<br \/>  Email: <a href=\"mailto:Editor@hedgeco.net\">Editor@hedgeco.net<\/a> <\/p>\n<div align=\"left\">\n<p align=\"left\">    HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge    Funds!  <\/p>\n<div align=\"left\">\n<p align=\"left\">      <strong>Be sure to check out our sister sites. <a href=\"http:\/\/www.hedgefundlounge.com\/\">www.hedgefundlounge.com<\/a>, <a href=      \"http:\/\/www.hedgefundtools.com\/\">www.hedgefundtools.com,<\/a><\/strong> and <a href=\"http:\/\/www.hedgefundemployment.com\/\"><strong>www.hedgefundemployment.com.<\/strong><\/a>    <\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>HedgeCo.Net (New York) &#8211; The SEC released the details of the fines U.S. District Court Judge Charles Pannell ordered against hedge fund manager Kirk Wright yesterday.Pannell ordered nearly $20 million in fines and penalties for defrauding investors through his hedge [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-5668","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5668","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=5668"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5668\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=5668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=5668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=5668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}