Feds: Fund execs lied after oil rig blast hurt investments
Source: Associated Press
Tom Hays, Associated Press
Updated 5:13 pm, Monday, December 19, 2016
NEW YORK (AP) — Hedge fund executives were charged Monday in a $1 billion fraud case linked to an oil rig explosion in the Gulf of Mexico that killed three workers and injured several others.
Mark Nordlicht, a founder and chief investment officer of Platinum Partners, and six other defendants were named in an indictment accusing them of lying to investors about the performance of a fund that ran into trouble when one of its largest assets, the Black Elk oil exploration company, had a rig explode in 2012 off Louisiana.
Nordlicht, 48, of New Rochelle, New York, pleaded not guilty securities fraud conspiracy and other offenses in federal court in Brooklyn. He was to be released on $5 million bond.
Authorities accused Platinum of falsely reporting an average of 17 percent returns while collecting more than $100 million in fees during a conspiracy that cheated investors out of $1 billion. When investors began to ask for their money back, the hedge fund paid them with new investments and internal loans, U.S. Attorney Robert Capers said at a news conference.
Read more: http://www.chron.com/news/crime/article/Feds-NY-hedge-founder-indicted-in-1-billion-10805646.php
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