Hedge Funder Snared In $35M Black Diamond Fraud

Law360, New York (December 1, 2010, 3:51 PM EST) -- The head of a purported hedge fund that allegedly fed money into Black Diamond Capital Solutions LLC’s $35 million Ponzi scheme has been charged with fraud for concealing staggering losses from investors.

On Tuesday federal prosecutors filed suit in the U.S. District Court for the Western District of North Carolina accusing Roy Scarboro of hiding the Black Diamond debacle from investors in his firm Affluent Profusion LP and then burning his way through hundreds of thousands of dollars in additional investments.

Affluent Profusion pumped investor money...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

USA v. Jones et al


Case Number

3:10-cr-00254

Court

Pennsylvania Middle

Nature of Suit

Judge

James M. Munley

Date Filed

September 7, 2010

Government Agencies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.