NC grand jury charges fund managers in $40M scam
CHARLOTTE, N.C. (AP) – The U.S. Attorney’s Office in Charlotte
says four hedge fund managers have been indicted in connection with
a Ponzi scheme that bilked investors out of $40 million.
It’s the latest development in a case involving Black Diamond
The indictment says the defendants lied to get money from their
victims by claiming they were operating legitimate hedge funds with
But U.S. Attorney Prosecutor Anne Tompkins says as Black Diamond
began collapsing, the defendants diverted the money.
The company’s founder, Keith Simmons, was convicted of
securities fraud, wire fraud and money laundering in Charlotte in
2010. He is facing up to 80 years in prison.
Six people also have already pleaded guilty to their roles in
the fraud, which took place between October 2007 and April 2010.
(Copyright 2012 by The Associated Press. All Rights Reserved.)
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