SEC Accuses Hedge Fund Manager of Hiding Losses and converting Investor Funds
- October 03, 2011 by Qui Tam
- Federal False Claims Act
The SEC has filed a civil complaint against Corey Ribotsky and his hedge fund, NIR Group of fraud by concealing losses and using investor funds for personal expenses. The Complaint alleges that Ribotsky misappropriated over $1 million in client funds and using the funds for automobile payments and jewelry. The complaint also alleges that the hedge fund never generated sufficient cash to pay investors, which caused the fund to use other investor funds to cover withdrawals.