The Hedge Fund Fraud Casebook - (Wiley Finance) by Bruce Johnson (Hardcover)

Book Synopsis

Compared to mutual funds, hedge funds are the James Bonds of the marketplace. They have been relatively unfettered by government regulation, and they play bigger games, take bigger risks, use unorthodox methods, and have the power to capture the public imagination in a way that their lesser counterparts have difficulty approaching. At once fascinating and startling, The Hedge Fund Fraud Casebook provides readers with a broad knowledge of hedge fund regulation through a look at the first 100 cases of proven fraud at hedge funds.

Compiling concrete data on cases of hedge fund fraud, The Hedge Fund Fraud Casebook provides you with a factual foundation for assessing this difficult area of risk.

• First comprehensive survey of hedge fund fraud including 100 chronological fraud cases
• Includes descriptions of each case, diagram of the player interaction, and tables detailing monies recovered, fines paid, prison terms, and professional sanctions
• Useful for both individual and professional investors, particularly given the last eighteen months of fraud and mismanagement among leading financial professionals and companies

The Hedge Fund Fraud Casebook provides a hedge fund professional's look at fraud and can help you prevent or avoid similar frauds in the future. It's a vital resource for any hedge fund manager or investor.

From the Back Cover

The James Bonds of the marketplace, hedge funds are less encumbered by government regulation, less transparent to investors, play more complex games, take bigger risks, and capture the public imagination in a way that their lesser counterparts have difficulty approaching. These unique features have resulted in an increasing scale of losses due to fraud, with no corresponding increases in safeguards available for investors.

Devoted to this little-researched yet increasingly crucial area, The Hedge Fund Fraud Casebook thoroughly informs those who seek to risk their capital on a rational basis and want to better understand some of the outer reaches of what constitutes rational risk.

Divided into two parts, this fascinating look at deception in the hedge fund world begins with a broad appraisal of the context of fraud and of hedge funds, and then presents a compendium of 100 chronologically arranged "cases" beginning with the first known fraud in a hedge fund. It covers:

• The historic roots of prohibitions against fraud
• Assumptions regarding events and uncertainties in the mortality of hedge funds
• Uncertainties and events within the law enforcement system

Each involving a hedge fund participant and a formal allegation of fraud, all of the cases have been disposed within U.S. jurisdictions: civil, criminal, or administrative. With an identical page format of facts, charts, tables, and summarized texts provided for each case for easy cross-comparisons, The Hedge Fund Fraud Casebook is the first extensive book completely dedicated to this subject. It draws important conclusions as to the nature of fraud in the hedge fund industry, its reasons, its methods, the outcomes, and convincing insights into ways to prevent or predict the crime in advance.

About the Author

BRUCE JOHNSON spent more than a decade as a hedge fund practitioner, managing and advising funds. He was CEO of Albourne America LLC, the U.S. arm of Albourne Partners, a hedge fund advisory firm based in London. While at Albourne, Johnson researched new approaches to hedge fund due diligence including the quantitative analysis of "fund failure" and hedge fund credit. After an earlier career as an architect and city planner in New York and London, Johnson has gained twenty-four years worth of experience in finance, including extended postings in Tokyo, Hong Kong, and London. While head of Global Research for Baring Securities, he published an important paper on the future of the Chinese and Indian economies, correctly predicting their current impact on global trade, and also created and managed the first investible global emerging markets equity index.