Hedge Fund Reader : Make Sure you Share Share-Purchase Information

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February 08, 2007

Make Sure you Share Share-Purchase Information

-- Pushpa Sathish, Staff Writer

Buying the majority of shares in a company, hiding the fact from the SEC, not informing your investors about the beneficial interest due to them, being involved in a securities fraud – these are misdemeanors that will get you into heaps of trouble, a fact that John H. Whittier will attest to.

The former head of the now defunct hedge fund Wood River Capital Management LLC was indicted on the charges of cheating investors to the tune of $88 million in Oct 2005. He’s being accused of securities fraud and failure to disclose beneficial interest in a publicly traded security - of 5 percent in one and 10 percent in two others.

Whittier, who purchased 80 percent of wireless communications company EndWave Corp., failed to disclose ownership of the same – which is why he is being charged with attempting to con investors in the hedge funds Wood River Partners LP and Wood Rivers Partners Offshore Ltd.

His arraignment is scheduled for Feb 8.

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February 8, 2007 in Gossip & Scandal | Permalink