Big money dictated fund-deal scheme

[NNN0LHI]

http://www.nj.com/business/ledger/index.ssf?/base/business-5/1062911785144960.xml

Revenue projected at $2.25 million a year


Sunday, September 07, 2003


BY DAVID RESS
Star-Ledger Staff

Eddie Stern, whose family made a fortune from the Hartz Mountain flea-collar and pet-food empire, had a bright idea three years ago: Doing trades in mutual-fund shares that other investors didn't have the connections to pull off.

Stern, 38, was running the family business's hedge fund while his big brother, Emanuel, took charge of a real-estate operation with 200 buildings. He and the family fund were about to become one of the few winners in one of the worst stock-market slumps in history.

Now, a months-long investigation by New York officials found the millions in profits the $700 million hedge fund made came at the expense of smaller investors.

And hundreds of e-mails, trading records and other documents released last week show fund-company officials knew the trades never should have happened, but went along anyway.

The reason was money.

[msmcghee]

1. Very much like that Robert Redford movie . .

. . the Sting, I think it was called.

Where they set up this elaborate betting parlor and delayed the race information coming in. They would know who won the race before the mark - and could place a bet on the outcome that would always win.

Same kind of deal here.

Anyone who thinks they can make money on the stock market is a sucker - it's all set up for the big money at the expense of the small investor.

[NNN0LHI]

2. Wonder what the investors here at DU think about this shit?

(Insert the sound of crickets chirping here)