Articles Posted in Hedge fund whistleblowers

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.

Hedge Fund SAC Capital Advisers has agreed to pay a record $1.8 billion to resolve insider trading investigations by the Department of Justice and Founder Cohen Steven A. Cohen will go uncharged uncharged. The U.S. Department of Justice said that payout is the largest insider trading settlement in history.

An indictment in July alleged systemic insider trading took place at SAC Capital involving the stocks of more than 20 publicly-traded companies from 1999 through 2010. Eight employees have pleaded guilty or been convicted at trial. SAC Capital agreed in November to plead guilty to four counts of securities fraud and one count of wire fraud.

The Stamford, Connecticut-based firm renamed itself Point72 Asset Management and is becoming a family office that will primarily manage Cohen’s personal fortune, recently estimated by Forbes magazine at $11.1 billion.

Last week, the Securities and Exchange Commission awarded a confidential whistleblower the highest sum to date for reporting on a fraudulent hedge fund that had bilked moneys from hundreds of investors. The amount received by the whistleblower was $14 million.

While the name of the whistleblower was not revealed and no information about the financial fraud released, it has become known that the whistleblower was reporting on a hedge fund and that the sums of moneys involved were quite  substantial.

The award itself was large but not as large as some of the amounts soon to be awarded, according to sources close to the SEC. This is exactly what the agency is hoping would occur as information on major fraud is hard to come by and usually only revealed by those close to the wrongdoers.