The Hedge Fund Fraud Casebook
The James Bonds of the marketplace, hedge funds are less encumbered by government regulation, less trans-parent to investors, play more complex games, take bigger risks, and capture the public imagination in a way that their lesser counterparts have difficulty approaching. These unique features have resulted in an increasing scale of losses due to fraud, with no corresponding increases in safeguards available for investors.Devoted to this little-researched yet increasingly crucial area, TheHedge Fund Fraud Casebookthoroughly informs those who seek to risk their capital on a rational basis and want to better understand some of the outer reaches of what constitutes rational risk.Divided into two parts, this fascinating look at deception in the hedge fund world begins with a broad appraisal of the context of fraud and of hedge funds, and then presents a compendium of 100 chronologically arranged "cases" beginning with the first known fraud in a hedge fund. It covers:The historic roots of prohibitions against fraudAssumptions regarding events and uncertainties in the mortality of hedge fundsUncertainties and events within the law enforcement systemEach involving a hedge fund participant and a formal allegation of fraud, all of the cases have been disposed within U.S. jurisdictions: civil, criminal, or administrative. With an identical page format of facts, charts, tables, and summarized texts provided for each case for easy cross-comparisons,The Hedge Fund Fraud Casebookis the first extensive book completely dedicated to this subject. It draws important conclusions as to the nature of fraud in the hedge fund industry, its reasons, its methods, the outcomes, and convincing insights into ways to prevent or predict the crime in advance.