An Ukrainian limo driver turned hedge funder admitted he’s guilty of fraud today.It all started after Alan Fishman spent years of escorting business executives around in his limos.
(They probably got a kick out of the limo driver with the same name as the former WaMu CEO.)
According to Crains New York, in 2003 Fishman and two partners decided to launch a “hedge fund” of their own, A.R. Capital Global Fund.
Just by cold calling, the fraudsters raised $20 million from 70 investors.
The fund managers told investors they would use “active, leveraged trading” and “fundamental and technical analysis” – probably terms that Fishman picked up while listening in on conversations in the back of his limo – to buy shares in overseas real estate companies and trade currencies, oil, gas and other commodities.
Their business savvy ends there, unfortunately.
Fishman and his partners actually kept the money in three Ukrainian stocks, a Ukrainian money market fund, and bank accounts in Lithuania.
Interestingly, Mr. Fishman’s lawyer says he continued working at the limousine company while working at the hedge fund.