Alexander James Trabulse
Alexander James Trabulse | Fraud Case
While nothing has been proven yet the FBI arrested another hedge fund professional in San Francisco for fraud. Here are a few quotes about the case which sums up what happened:
In 2006, about 165 investors had invested $17.6 million in the Fahey Fund or Fahey Financial Group, investigators said. Trabulse misled those investors into believing that their investments were worth $50 million when in fact they were worth $12 million, authorities said.
The SEC said Trabulse misused fund assets to pay for personal expenses and to buy cars, a $25,000 home theater system and his ex-wife's overseas shopping allowance. Trabulse let his daughter use a debit card linked to one of the fund's bank accounts to buy furniture, airline tickets and to pay for her 2007 honeymoon in Panama, the commission said. source