Case library · The Con
Profits That Never Existed
United States v. Israel (2008)
Charge: Conspiracy, investment adviser fraud and mail fraudCourt: U.S. District Court for the Southern District of New YorkState: New YorkDocket: The Con
The facts
A hedge fund manager kept losing his investors' money. Rather than report the losses, he and his finance chief set up an accounting firm that existed only on paper. That firm signed off on statements showing profits the funds had never earned. Fresh money kept arriving on the strength of those statements. Over several years the hole grew. When the funds finally collapsed, investors were out about three hundred million dollars.
You have the facts the court had. Guilty or not guilty? Call it in the game with your friends, then see what the court actually decided. Wrong call, you drink.
Citation: United States v. Israel, No. 05 Cr. 1039 (S.D.N.Y.)
Read more at justice.gov. The source reveals the outcome.