June 06, 2006
$7 mn hedge fund scam uncovered
This piece of news will give all the doubters a chance to say "I told you so". Recently, a former New York University student pleaded guilty to bank and wire fraud, admitting he used his student ID and expertly forged documents to pose as the heir to a billionaire Turkish family and trick investors into pouring millions into a nonexistent hedge fund.
Hakan Yalincak's fund, the Daedalus Capital Relative Fund I, wasn't a legitimate investment and prosecutors said investors lost more than $7 million -- a figure Yalincak said is overstated. Prosecutors say the money was spent on a Porsche, a Tiffany diamond and a $1.25 million donation to NYU.
Read more: NYU whiz kid pleads guilty in $7 million hedge fund scam
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