Francesco Rusciano is a 27-year-old hedge fund manager from Connecticut who gave falsified information to a selling agent, at least twice increasing the asset amounts listed in his funds by using white out.HedgeFund.net: SEC Alleges Hedge Fund Fraud Done With White Out (May 2, 2009)
Rusciano's hedge funds are marketed out of the office of Paradigm Global—a fund of hedge funds owned and controlled by Hunter Biden and James Biden, the son and brother of Vice President Joe Biden. The Bidens are not implicated in any wrong-doing; Rusciano shared an office and office equipment with them.BNET: VP Biden Hedge Fund Scandal... (May 2, 2009)
Fraud and the SEC
At the time of his arrest on May 1, 2009, Francesco Rusciano was under federal investigation involving an alleged $30 million fraud. He is accused of raising money for two hedge funds by overstating the amounts in his funds and by misrepresenting his background, experience, and past performance.ConnPost.com: FBI arrests Stamford hedge fund manager (May 2, 2009)
Rusciano is being charged in a federal court in Texas. Charges against him say that he performed "marginally" at USB with a "modest sum" and lost millions for the company. Marketing materials he developed for the Ponte Negra funds claimed he had managed a USB portfolio of more than $1 billion and quadrupled profits for them.ConnPost.com: FBI arrests Stamford hedge fund manager (May 2, 2009) HedgeFund.net: SEC Alleges Hedge Fund Fraud Done With White Out (May 2, 2009)
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Fast Facts
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Formed two hedge funds, Ponta Negra Fund I, LLC and Ponta Negra Offshore Fund I, Ltd in 2007#In June 2006, he was fired for misrepresenting information to UBS SecuritiesHedgeFund.net: SEC Alleges Hedge Fund Fraud Done With White Out (May 2, 2009)
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In August 2008, altered a document to show a fund had $43 million, not $3 million
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