Insane Capital - Hedge Fund Fraud
Sometimes the headline just says it all, according to a DOJ Press Release, "Kevin J. O'Connor, United States Attorney for the District of Connecticut, announced that EVAN MISSHULA, age 40, of 104 Husted Lane, Greenwich, Connecticut, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 21 months of imprisonment, followed by three years of supervised release. Judge Arterton also ordered MISSHULA to spend the first three months of his term of supervised release confined to his home. On June 20, MISSHULA pleaded guilty to one count of mail fraud arising from a scheme to defraud investors in the Sane Capital hedge fund, which he operated from Greenwich and New York City.
According to documents filed with the Court and statements made in court, MISSHULA founded and operated the Sane Capital hedge fund in 2000. From 2001 to 2004, MISSHULA defrauded investors of the hedge fund by falsely representing to the investors that their investments were invested in securities. In pleading guilty, MISSHULA admitted that he had stolen the investments without the investors' knowledge, and then lied to investors regarding the returns earned on the investments in an effort to prevent investors from seeking to redeem their investments.
During the course of this scheme, MISSHULA defrauded his investors of $537,500. Judge Arterton today ordered MISSHULA to pay full restitution to his victim investors."
Sane Capital Hedge Fund? Why not just raise the Jolly Roger and wave it around.
