Post by sandi66 on Feb 26, 2008 7:15:33 GMT -5
Garden State Business Briefs: Accused fund manager makes court appearance
by The Star-Ledger Staff
Tuesday February 26, 2008, 7:01 AM
An Essex Fells man accused of taking part in a hedge fund fraud that cost investors more than $200 million had his initial appearance in federal court in Newark yesterday.
Martin Garvey, 44, was charged with several others in an indictment unsealed last week in Miami. Garvey managed several hedge funds known as the Lancer Group funds between 1999 and July 2003, according to the U.S. Attorney's Office in Miami.
Garvey and other hedge-fund executives purchased thinly traded stocks of shell companies that often had no operations, then manipulated the stock prices to artificially inflate the funds' values, according to the indictment. The falsely inflated values led to large performance and management fees, the indictment said.
During a brief appearance before U.S. Magistrate Mark Falk, Garvey was advised of the charges -- conspiracy and wire fraud -- and bond was set at an agreed $250,000. Garvey was not in custody before or after the hearing.
His attorney, Jack Wenik, declined to comment. Garvey ran last year as a Democrat for a council seat in Essex Fells but dropped out prior to the general election.
-- Greg Saitz
www.nj.com/business/index.ssf/2008/02/garden_state_business_briefs_a.html
by The Star-Ledger Staff
Tuesday February 26, 2008, 7:01 AM
An Essex Fells man accused of taking part in a hedge fund fraud that cost investors more than $200 million had his initial appearance in federal court in Newark yesterday.
Martin Garvey, 44, was charged with several others in an indictment unsealed last week in Miami. Garvey managed several hedge funds known as the Lancer Group funds between 1999 and July 2003, according to the U.S. Attorney's Office in Miami.
Garvey and other hedge-fund executives purchased thinly traded stocks of shell companies that often had no operations, then manipulated the stock prices to artificially inflate the funds' values, according to the indictment. The falsely inflated values led to large performance and management fees, the indictment said.
During a brief appearance before U.S. Magistrate Mark Falk, Garvey was advised of the charges -- conspiracy and wire fraud -- and bond was set at an agreed $250,000. Garvey was not in custody before or after the hearing.
His attorney, Jack Wenik, declined to comment. Garvey ran last year as a Democrat for a council seat in Essex Fells but dropped out prior to the general election.
-- Greg Saitz
www.nj.com/business/index.ssf/2008/02/garden_state_business_briefs_a.html