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July 21, 2006
Hedge Fund Fraud Case Takes a New Turn
A hedge fund manager who disappeared with millions of dollars belonging to 500 investors now has 24 additional counts in his federal fraud case. The hedge fund manager Kirk Wright and his company were accused of collecting between $115 million and $185 million from 500 investors since 1997. They misled them through false documents and statements. Kirk now faces 21 counts of mail fraud and three counts of securities fraud. He will also face a federal lawsuit from the Security and Exchange Commission (SEC). Just a few days ago, his bail plea was denied by a judge.
When several investors demanded to see brokerage account statements from hedge funds in October, Wright produced statements he said were from online brokerage Ameritrade, showing over $166.6 million in assets spread across five hedge funds. To date, authorities and creditors have located less than $200,000.
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