One Fraudster
According to the SEC, “Alexander James Trabulse sent account statements to investors in his Fahey Fund that inflated the fund’s returns by as much as 200 percent, while using investor money to purchase cars and finance shopping sprees for his family members.”
www dot sec dot gov/news/press/2007/2007-203.htm
It is a illegal and unethical behavior that is common in hedge fund. They try to cover the loss and inflate the return to get the 2/20 management fee. In this case, the regulation helps to prevent the fraud.
