In this Friday, Jan. 25, 2013, photo, Specialist Douglas Johnson, left, and trader Timothy Nick work on the floor of the New York Stock Exchange. Some rare good economic news from Europe pushed world stock markets higher on Friday Feb. 1, 2013 as investors awaited a key U.S. employment report that is expected to show steady, if unremarkable, job growth. (AP Photo/Richard Drew)
Hedge fund execs charged in alleged $311M swindle
Published: 09:33:26 PM, Thu 07 February 2013 UTC
PHILADELPHIA (AP) — Federal prosecutors in Philadelphia say that two hedge fund executives have been charged in a scheme that defrauded institutional investors of more than $300 million.
An indictment filed Thursday says that Helmut Kiener, a 53-year-old German billionaire who founded the hedge fund group K1, partnered with a North Carolina man to swindle Barclays Bank, Bear Stearns and BNP Paribas. Court documents say Kiener used some of his ill-gotten gains to buy oceanfront real estate in Florida, an executive jet, a helicopter, luxury cars and boats.
Kiener was convicted of similar charges in Germany in 2011. He was sentenced to more than 10 years in prison.
Sixty-one-year-old John Tausche of Blowing Rock, N.C., was charged with bank fraud and money-laundering. His lawyer says he's cooperating with the government.
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