Hedge Fund Manager Fined and Banned for Mismarking Positions

UK Hedge Fund Manager Fined and Banned by Financial Services Authority for Mismarking Positions
The U.K.'s financial regulator Wednesday said it had banned and fined hedge fund manager, Loic Montserret of BlueCrest Capital Management, for mismarking trading positions as he tried to hide losses and keep his job. Monteserret is the first individual to be both banned and fined for mismarking trade positions by the Financial Services Authority. At one point, his mismarking resulted in the fund being overvalued by $8.6 million.

Montserret was banned from the securities industry for 15 years and fined GBP35,000.

Monteserret, manager of the BlueCrest Multi Strategy Credit Fund, was responsible for managing about $60 million of BlueCrest Capital Management's $12 billion in assets under management and is one of the UK's largest hedge funds.

Loic Albert Antoine Montserrat, now a former hedge fund manager manager at BlueCrest Capital Management Ltd., is the first individual to be both banned and fined for mismarking trade positions by the Financial Services Authority.

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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Mini-Madoff - Ex-Car Salesman's Hedge Fund Ponzi Scheme

Rod Stringer, a former car salesman from West-Texas was running a Ponzi scheme similar in some ways to that of Bernie Madoff's famous scam. However, the magnitude of the losses from Stringer's hedge fund is far smaller. The $45 million fund reported annual returns as high as 60%, a number the SEC claims is completely bogus.

Among Stringer's 31 clients were many elderly investors. The SEC notes that the location of the remaining funds is unknown at this time.