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| Finance |
Skirting Swindlers
Peter J. Turecek
01/01/2004
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Does the investment opportunity sound too good to be true? Investors need to ask and trust their gut—if something sounds sketchy, it probably is.
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Similarly, when the investor meets with the hedge fund manager and his or her team, what is the impression of them? Do warning bells go off? Are the managers and team candid and detailed with responses?
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When was the hedge fund started? What are the assets under management? A number of fraudulent hedge funds show that they tend to be recently established funds with small amounts of capital under management.
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Who is the fund’s legal counsel? Accountants? Other professional service providers? Verify the accuracy of these statements with the provider. | Peter J. Turecek is a managing director in the
New York office of Kroll Inc., a global risk
consulting company. He has worked
on a variety of multinational investigations and specializes in
investigations of hedge fund
managers and investors. |
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