Articles Posted in Hedge fund fraud

pension-300x200Sears pensioners have requested the Superior Court in Toronto to appoint an investigator to look into the nearly $300 Million shortfall found in the company’s pension fund. They particularly want the investigator to assess the $3 billion in payments made to Sears Canada shareholders.

The former employees are particularly targeting the U.S. hedge fund ESL Investments and have included its CEO Eddie Lampert in the complaints. This CEO has been the head of Sears since 2005 and has received the majority of the $3 billion pay out.

Lampert has said the the shareholder payments were not questionable and that most of the money came from the sale of the company’s valuable real estate holdings. Lampert has claimed that his hedge fund company had significant financial losses after the Sears bankruptcy. He said that the demise of Sears Canada is mostly attributed to a failed restructuring plan that he opposed in 2016. He also believes that the pension shortfall has been overestimated and that the money will eventually be recouped.

33-year-old hedge fund whiz kid Mark Malik CEO of Wold Hedge Global Strategy has been charged with securities fraud by the S.E.C. is being held on $1 million bail in the Manhattan detention center. Purportedly, his company was in the process of nailing a $1 billion deal to go public and was hiring dozens of analysts and opening offices in different countries around the world.

His fund had reported assets of $100 million and record returns which raised his profile as a top earner among elite hedge funds. Malik, whose full name is Moazzam Ifzal Malik described himself as “CEO-Global Economist.” Media firm Bloomberg LP called him a “rising fund manager. BarclauHedge Ltd, an Iowa company gave Mr. Malik’s fund a recognition award for excellence #1. A Barclay Hedge report in August 2012 showed the fund achieving returns of 188.06% in 2010 and 189.18% in 2011 according to court filings.

The SEC accuses him of stealing more than $700,000 from investors. He faces trial on 28 criminal counts and up to 20 years in prison if convicted.