Thursday, March 19, 2009
California Hedge Fund Manager Arrested In Hong Kong On Misappropriation Charges
Albert K. Hu, 47, formerly of Sunnyvale, California was arrested in Hong Kong Tuesday on six counts of wire fraud for an alleged investment fraud scheme involving hedge funds he administered from 2001 to 2008. Prosecutors allege that Hu had promised investors returns as high as 20-to-30 percent a year but instead moved investor funds to overseas accounts, misappropriated as much as $5 million. Hu's scheme involved two hedge funds he ran, Asenqua Beta Fund and Fireside LS Fund. Hue reportedly left the US, closing out accounts and relocating in Hong Kong. He is now in the process of extradition back to the U.S. The SEC action freezes the assets of Hu's companies. The SEC complaint also alleges that Hu provided false and fraudulent documentation to investors. Interestingly, Hu's company website is still operating here. Hu's bio claims he has a Ph.D. from M.I.T.
Read the SEC complaint here.