Bronco players getting scammed - The Orange Mane

Atlas · 05-19-2006, 07:57 AM

Missing hedge fund manager arrested in Florida
Thu May 18, 2006 1:39 PM ET

SoCals link:http://today.reuters.com/investing/f...S-UPDATE-1.XML

By Svea Herbst-Bayliss

BOSTON, May 18 (Reuters) - A former hedge fund manager, whose clients accused him of having cheated them out of $100 million or more, has been arrested in Florida after hiding out for nearly three months from law enforcement officials.

Kirk Wright, who ran Atlanta-based International Management Associates and invested millions for many doctors, businessmen, as well as professional athletes, was arrested in Miami, his lawyer Jacob Frenkel said.

He is scheduled to be brought before a federal magistrate in Miami and will then be returned to Atlanta to face mail fraud charges.

The case has drawn intense media attention because the cheated clients include seven current or former National Football League players who worked for teams such as the Denver Broncos and Chicago Bears and because lawyers familiar with the matter said nearly all of the money seems to be gone.

Armed with a graduate degree from Harvard University, Wright began managing money in 1997 and quickly made a name for himself in the loosely regulated $1.2 trillion hedge fund industry by wooing wealthy African-American investors.

He promised clients 20 percent returns on the $115 million to $185 million he allegedly managed. He made his promises at a time hedge fund industry returns were significantly more modest, ranging in the single not double digits.

Seven current and former National Football League players, such as Denver Broncos Terrell Davis, Steve Atwater and Rod Smith and former Tennessee Titan Blaine Bishop believed Wright and signed up.

But when some of them sued after not getting their money back, Wright's empire quickly collapsed. The U.S. Securities and Exchange Commission charged Wright, 35, with fraud for having provided "blatantly false information regarding the value of assets in the funds."

When Wright failed to show up for court hearings in February, a Georgia judge issued a bench warrant for his arrest but federal and local authorities could not find the manager.

As Wright eluded authorities, a receiver spent weeks weeding through his deserted office and seems to have found evidence that the manager siphoned off close to $7 million for himself, court documents show.

The papers show that Wright bought an Aston Martin, Jaguar and Bentley, plus art and jewelry worth roughly $600,000 apparently with the money that belonged to his clients.

He also appears to have invested about $6 million in several real estate development ventures, the papers show.

Some clients were so infuriated with the slow progress authorities were making in finding Wright that they planned to hire private detectives to aid in the search.

For the government, this case appears to be the first high profile fraud case since the SEC forced many hedge funds to register with regulators, signaling tighter oversight of the fast-growing industry where assets have doubled in the last five years

Atlas · 05-19-2006, 07:58 AM

I wonder how much money Rod and TD lost?

I remember hearing about this awhile back but I didn't know the details. Interesting stuff.

Mile High Shack · 05-19-2006, 08:02 AM

that's why you should manage your own money..........granted, this guy had credentials, but with that much money, I couldn't trust anyone but myself

Atlas · 05-19-2006, 08:03 AM

Here is another blurb from CNN.

Fund manager accused of cheating NFL players arrested

SoCals link: http://money.cnn.com/2006/05/18/news...d_arrest.reut/

After allegedly stealing $100M and hiding out for nearly three months, Kirk Wright arrested in Miami.
May 18, 2006: 1:14 PM EDT

BOSTON (Reuters) - A former hedge fund manager accused by clients of cheating them out of $100 million or more has been arrested in Florida after hiding out from law enforcement officials for nearly three months.

Kirk Wright, who ran Atlanta-based International Management Associates and invested millions for doctors and businessmen, as well as U.S. football players, was arrested in Miami, his lawyer, Jacob Frankel, said.

A Georgia judge issued a bench warrant for Wright's arrest in February after he failed to show up for court hearings.

The case has drawn intense media attention because the cheated clients include seven current or former National Football League players, who belonged to teams such as the Denver Broncos and Chicago Bears, and because lawyers familiar with the matter said nearly all of the money seems to be gone.

footstepsfrom#27 · 05-19-2006, 08:22 AM

Quote:

Originally Posted by Mile High Shack

that's why you should manage your own money..........granted, this guy had credentials, but with that much money, I couldn't trust anyone but myself

No, that's why you do some serious researach before finding a professional, and enough knowledge building to recognize a problem before it becomes one. Lesson 1...NEVER trust anyone who promises what your rate of return will be...since that's not only unethical, it's also illegal. Lesson 2...stay out of hedge funds unless you're a very serious investor with at least a year to study the markets. You can make good money in hedge funds, and you can easily go broke.

Rascal · 05-19-2006, 08:23 AM

Yeah I got scammed last night too. Thought the wife was going to put out after I did a bunch of chores. Damn liar.

Billy Clyde Puckett · 05-19-2006, 08:41 AM

Quote:

Originally Posted by Rascal

Yeah I got scammed last night too. Thought the wife was going to put out after I did a bunch of chores. Damn liar.

Mile High Shack · 05-19-2006, 09:06 AM

Quote:

Originally Posted by footstepsfrom#27

No, that's why you do some serious researach before finding a professional, and enough knowledge building to recognize a problem before it becomes one. Lesson 1...NEVER trust anyone who promises what your rate of return will be...since that's not only unethical, it's also illegal. Lesson 2...stay out of hedge funds unless you're a very serious investor with at least a year to study the markets. You can make good money in hedge funds, and you can easily go broke.

or option B
manage your own money

Mediator12 · 05-19-2006, 09:15 AM

Wow. This Board is really limited in its Sources. This was in the Wall Street Journal three months ago and Nobody posted it

I let my online subscription fade and did not think it Truly newsworthy at the time.

Mediator12 · 05-19-2006, 09:16 AM

Quote:

Originally Posted by Rascal

Yeah I got scammed last night too. Thought the wife was going to put out after I did a bunch of chores. Damn liar.

I am not sure what is worse. Her lying or you believing her in the first place

Wes Mantooth · 05-19-2006, 09:23 AM

http://www.orangemane.com/BB/showthread.php?t=42375

already posted but my title sucked.

Atlas · 05-19-2006, 03:31 PM

Quote:

Originally Posted by yoakum3

http://www.orangemane.com/BB/showthread.php?t=42375

already posted but my title sucked.

that title did suck

Jason in LA · 05-19-2006, 03:37 PM

Quote:

Originally Posted by Mile High Shack

that's why you should manage your own money..........granted, this guy had credentials, but with that much money, I couldn't trust anyone but myself

Totally agree. I keep all my money in my sock. Sucks that the only thing in my sock is my damn foot.

Jason in LA · 05-19-2006, 03:39 PM

Quote:

Originally Posted by Rascal

Yeah I got scammed last night too. Thought the wife was going to put out after I did a bunch of chores. Damn liar.

That happens to you too? Damn women.

I swear, I'm going to have to say, "I'm not going to mail out the light bill unless I get some...every night!"

05-19-2006, 07:57 AM	#1
Atlas Draft Defense Early&Often Join Date: Oct 2004 Posts: 18,526	Bronco players getting scammed Missing hedge fund manager arrested in Florida Thu May 18, 2006 1:39 PM ET SoCals link:http://today.reuters.com/investing/f...S-UPDATE-1.XML By Svea Herbst-Bayliss BOSTON, May 18 (Reuters) - A former hedge fund manager, whose clients accused him of having cheated them out of $100 million or more, has been arrested in Florida after hiding out for nearly three months from law enforcement officials. Kirk Wright, who ran Atlanta-based International Management Associates and invested millions for many doctors, businessmen, as well as professional athletes, was arrested in Miami, his lawyer Jacob Frenkel said. He is scheduled to be brought before a federal magistrate in Miami and will then be returned to Atlanta to face mail fraud charges. The case has drawn intense media attention because the cheated clients include seven current or former National Football League players who worked for teams such as the Denver Broncos and Chicago Bears and because lawyers familiar with the matter said nearly all of the money seems to be gone. Armed with a graduate degree from Harvard University, Wright began managing money in 1997 and quickly made a name for himself in the loosely regulated $1.2 trillion hedge fund industry by wooing wealthy African-American investors. He promised clients 20 percent returns on the $115 million to $185 million he allegedly managed. He made his promises at a time hedge fund industry returns were significantly more modest, ranging in the single not double digits. Seven current and former National Football League players, such as Denver Broncos Terrell Davis, Steve Atwater and Rod Smith and former Tennessee Titan Blaine Bishop believed Wright and signed up. But when some of them sued after not getting their money back, Wright's empire quickly collapsed. The U.S. Securities and Exchange Commission charged Wright, 35, with fraud for having provided "blatantly false information regarding the value of assets in the funds." When Wright failed to show up for court hearings in February, a Georgia judge issued a bench warrant for his arrest but federal and local authorities could not find the manager. As Wright eluded authorities, a receiver spent weeks weeding through his deserted office and seems to have found evidence that the manager siphoned off close to $7 million for himself, court documents show. The papers show that Wright bought an Aston Martin, Jaguar and Bentley, plus art and jewelry worth roughly $600,000 apparently with the money that belonged to his clients. He also appears to have invested about $6 million in several real estate development ventures, the papers show. Some clients were so infuriated with the slow progress authorities were making in finding Wright that they planned to hire private detectives to aid in the search. For the government, this case appears to be the first high profile fraud case since the SEC forced many hedge funds to register with regulators, signaling tighter oversight of the fast-growing industry where assets have doubled in the last five years

05-19-2006, 08:03 AM	#4
Atlas Draft Defense Early&Often Join Date: Oct 2004 Posts: 18,526	Here is another blurb from CNN. Fund manager accused of cheating NFL players arrested SoCals link: http://money.cnn.com/2006/05/18/news...d_arrest.reut/ After allegedly stealing $100M and hiding out for nearly three months, Kirk Wright arrested in Miami. May 18, 2006: 1:14 PM EDT BOSTON (Reuters) - A former hedge fund manager accused by clients of cheating them out of $100 million or more has been arrested in Florida after hiding out from law enforcement officials for nearly three months. Kirk Wright, who ran Atlanta-based International Management Associates and invested millions for doctors and businessmen, as well as U.S. football players, was arrested in Miami, his lawyer, Jacob Frankel, said. A Georgia judge issued a bench warrant for Wright's arrest in February after he failed to show up for court hearings. The case has drawn intense media attention because the cheated clients include seven current or former National Football League players, who belonged to teams such as the Denver Broncos and Chicago Bears, and because lawyers familiar with the matter said nearly all of the money seems to be gone. Last edited by Atlas; 05-19-2006 at 08:06 AM..

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05-19-2006, 07:58 AM	#2
Atlas Draft Defense Early&Often Join Date: Oct 2004 Posts: 18,526	I wonder how much money Rod and TD lost? I remember hearing about this awhile back but I didn't know the details. Interesting stuff.

05-19-2006, 08:02 AM	#3
Mile High Shack Ring of Famer Cock-a-doodle-do Join Date: May 2001 Location: Somewhere Posts: 17,010	that's why you should manage your own money..........granted, this guy had credentials, but with that much money, I couldn't trust anyone but myself

05-19-2006, 08:23 AM	#6
Rascal RIP Join Date: Mar 2004 Posts: 16,581 Adopt-a-Bronco: Turf	Yeah I got scammed last night too. Thought the wife was going to put out after I did a bunch of chores. Damn liar.

05-19-2006, 09:15 AM	#9
Mediator12 OM analyst REAL Front Seven Bandwagon !!! Join Date: Sep 2003 Location: INDY Posts: 9,701 Adopt-a-Bronco: Malik Jackson	Wow. This Board is really limited in its Sources. This was in the Wall Street Journal three months ago and Nobody posted it I let my online subscription fade and did not think it Truly newsworthy at the time.

05-19-2006, 09:23 AM	#11
Wes Mantooth Ring of Famer Join Date: Jan 2005 Posts: 2,455	http://www.orangemane.com/BB/showthread.php?t=42375 already posted but my title sucked.