Friday, January 23, 2009

Hedge Fund Is A Ponzi Scheme According To SEC

A former Texas bail bondsman who told investors he ran a $45 million hedge fund and installed a swimming pool at his office was sued by U.S. regulators for allegedly operating a Ponzi scheme.

Rod Cameron Stringer of Lamesa misappropriated millions of dollars from investors since 2001 while touting a trading strategy he said had annual profits of as much as 61 percent, the Securities and Exchange Commission said in a suit at federal court in Lubbock, Texas. A Federal Bureau of Investigation probe shows he raised at least $8.5 million since 2007 and had losses while investing less than a fifth of the cash, the SEC said.

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