Hedge Fund Reader : The modern day dacoits have rocked the investors’ boat

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August 26, 2005

The modern day dacoits have rocked the investors’ boat

The horror stories about Hedge funds’ being masked white-collar rogues cannot be easily wiped off. KL Group, a hedge fund advisory firm is another fund which has conned its investors to the tune of $200 million. The fund based in West Palm Beach, Florida has swindled away some the rich and smart individuals in the state. The fund was managed by three all Korean-born Americans principals who are siblings. Mr. Won Sok Lee and his two brothers Mr. John Bae Kim and Mr. Yung Bae Kim are absconding from the SEC, the Justice Department and a court-appointed receiver who are hunting them down. The trio opened a hedge fund advisory business in Palm Beach, one of the nation’s wealthiest enclaves three years back. The investors were lured in the trap with stupendous returns assured, Mr. Donald Trump had also been approached who although refused to be fooled. KL Group has shut shop and the principals are rumored to have jumped ship will the booty. The Financial Express Reports:

Three years ago, Lee and the Kim brothers opened a hedge fund advisory business in Palm Beach, one of the nation’s wealthiest enclaves. Driving flashy cars and living lavish lifestyles, the three principals — all Korean-born Americans in their mid-30’s — befriended the right people, who provided them with access to society functions and introductions to their wealthy clients. The aura of success and exclusivity around the firm was so strong that investors often begged to be let into its funds, some of which were said to have astounding annualised returns of 125 per cent for several years.

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August 26, 2005 in Gossip & Scandal | Permalink