Listed here are 5 issues you want to find out about crime in Westchester County. Video by Jordan Fenster/lohud
Michael Scronic was arrested Thursday morning.
A Pound Ridge hedge fund supervisor has been accused of operating a $19.seventy five million Ponzi scheme to pay for a “lavish way of life” that included a Vermont ski residence and nation membership charges.
Michael Scronic, forty six, was arrested by the FBI right now on federal securities fraud and wire fraud costs, the U.S. Lawyer’s Workplace stated. The hedge fund supervisor is predicted to seem in White Plains federal courtroom as we speak.
The Securities and Trade Fee has additionally filed civil expenses towards him.
Scronic, who has levels from Stanford College and the College of Chicago, is accused of fraudulently elevating cash from forty five buyers within the Scronic Macro Fund, which officers stated he has run from his house since 2010.
“Michael Scronic allegedly stole greater than $19 million from buyers by mendacity concerning the efficiency of his funding fund, after which spent a lot of that cash on his personal lavish way of life,” stated Joon H. Kim, appearing U.S. Lawyer for the Southern District of New York.
Previous to his alleged rip-off, Scronic spent about seven years working as an government director on an equities buying and selling desk at Morgan Stanley in New York Metropolis earlier than leaving that job round 2005, in line with the civil grievance.
Scronic is accused of beginning the rip-off in April 2010 by telling buyers that his fund invested in choices, based on the legal grievance.
Officers stated Scronic informed buyers that the fund had constructive returns in all however one of many 22 quarters from January 2012 by means of June 2017, and that the very best reported quarterly return was thirteen.four % within the fourth quarter of 2014.
The fund truly misplaced cash, although, with a complete internet lack of about $15.7 million earlier than commissions, officers stated. The fund’s solely constructive return got here in its first quarter of operation in 2010, officers stated; it then misplaced cash in every of the subsequent 28 quarters.
Scronic is accused of mendacity to buyers concerning the fund’s belongings. Officers stated he despatched out account statements that confirmed complete fund belongings of $21.7 million as of June 30, 2017, when the precise stability of his brokerage and financial institution accounts was a mixed $102,376.
A few of investor cash was used on trades, officers stated, however Scronic can also be accused of spending greater than $500,000 a yr on private bills since 2012. He’s accused of spending $12,275 on month-to-month lease for his house and utilizing investor cash to make mortgage funds on a trip house in Stratton, Vermont, pay charges for seashore golf equipment and nation golf equipment, paying the Stratton Mountain Membership $30,000 in July and racking up month-to-month credit score expenses of greater than $15,000.
Officers stated that buyers have requested Scronic to pay them again in current months, and that he ignored some requests and lied about others, together with telling buyers that the fund would pay out on the finish…