Russian Roulette: Hedge Fund Falls Victim To Fraud Ring

NY Post:

Hedge funds have reputations for being shrouded in mystery, but a London-based fund that specializes in investing in Russia finds itself at the center of a story that's a downright thriller.

Hermitage Capital Management, a $3 billion fund that also invests in emerging markets, recently put out an investor letter that reads more like a spy novel than an update to investors about performance.

Indeed, the note describes police raids, fake companies and at least one murderer all connected to a twisted and complex fraud scheme hatched by thieves who stole millions from the Russian government.

Hermitage's July 23 letter, which was obtained by The Post, states that while thieves targeting the firm failed to get their hands on its assets, they succeeded in stealing millions from the Russian government by posing as Hermitage officials.

Read the whole story: NY Post

Comments

[geobushono]

...and so the money changers are cheating each other??...­....slow news day....unl­ess you're the last zillionaire standing.

[larry278]

Then there are those who play Russian roulette with an automatic pistol.

[Chavez08]

If corporations can have Socialism, why can't we?

[larry278]

In the USA our tradition is that socialism is for the rich only.

[Blutus]

Tell me one more time why America needs to fear Russia??

Once more, with gusto!

[Podewumun]

Sell them rope and then hang them with it. LOL

[Harrier]

That is what you deserve where you don't verify assets

[JScott]

Punk'd or PWN'd.

[RabidRightRebel]

Experience has shown that there is no such thing as an honest Russian businessman. If you swim with the sharks you are eventually going to get eaten.