Investment Fund Co-Founder From Fairfield County Charged In Multi-Million Dollar Fraud
The former co-founder of a multi-million dollar hedge fund is facing charges claiming that he lied to his investors and misappropriated nearly $20 million as part of a Ponzi scheme.
Jason Rhodes of Fairfield County was arrested on Tuesday morning on conspiracy, securities fraud, wire fraud, and investment adviser fraud charges.
The charges stem from his participation in an elaborate scheme to defraud investors in the hedge fund and using investor funds to repay earlier investors in a Ponzi-like manner.
Beginning in November 2013, Rhodes, a resident of the village of Rowayton in Norwalk, and his co-conspirators solicited investments in the hedge fund by falsely representing to investors that their funds would be used for legitimate, specified, investment purposes, largely through purchasing securities, the indictment alleges.
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The scheme lasted through December 2016, during which Rhodes and his co-conspirators defrauded 25 investors out of approximately $19.6 million.
Read more: https://yonkers.dailyvoice.com/news/investment-fund-co-founder-from-area-charged-in-multi-million-dollar-fraud/743410/
