US Hedge Fund Manager Arrested

Albert Hu of Asenqua Capital Management in Silicon Valley was arrested in Hong Kong. Hu is alleged to have stolen $5 million or more from investors. Albert Hu faces six counts of wire fraud charges for an investment fraud scheme involving hedge funds he administered from 2002 to 2008, the San Jose Mercury News reported.

According to the FBI, "Hu's materially false statements regarding his hedge funds and their affiliated entities caused victim-investors to wire substantial amounts to entities under his control."

Though the amount of money at stake is 1/10,000 of what Bernard Madoff allegedlyy took from investors, some of the promises were similar. Alber Hu allegedly promised investors steady returns of 20-30%.



Albert is also a Partner at Asenqua Ventures, a VC firm.

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Did Madoff Have Co-Conspirators?

Madoff's Acomplice?

Given the apparent magnitude of Bernie Madoff's alleged fraud, some experts have suggested he couldn't possibly have acted alone. Madoff asserts that he acted alone, but could a $50 billion dollar hedge fund really operate with dozens of traders, accountants, banks, regulators and others all kept in the dark? Founder of SeaBreeze Capital, Dave Kass suggests, "This was a very large scheme, and he couldn't have done it without the cooperation and assistance of someone well informed who could process trades, report them and create monthly statements."



Because the Madoff hedge fund, know as BLM, was essentially a family business, some are suggesting an obvious place to look for co-conspirators is with Bernie's brother Peter, sons Andy and Mark, and neice, Shana. They were the firm's CFO, director of trading, director of proprietary trading, and compliance attorney, respectively. However, it should be noted that authorities have mostly ruled out involvement by Madoff's family memebers.



Some "outside help" is also being investigated and Boston investment firm Cohmad Securities has had its records subpoenaed by regulators.



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Fairfield Greenwich Group Profited from Madoff Scheme?

Fairfield Greenwich Group Makes More than $500 Million from Madoff Fund
Investors channeled to Bernard Madoff by hedge fund, Fairfield Greenwich Group, will likely lose the entirity of their $7.6 billion in investments and Fairfield Greenwich's directors probably lost $60 million of thier own funds in the scheme. However, Fairfield Greenwich may have made more than $600 million in management fees from those same unfortunate investors, the Financial Times reported today.

Estimates of the size of the losses from Madoff's ponzi scheme are between $30 billion and $50 billion. The SEC admits receiving a variety of warnings about Madoff including a 2005 report entitled "The World's Larges Hedge Fund is a Fraud."

Madoff's firm is formerly know as Bernard L. Madoff Investment Securities "BLM"