Hedge-Fund Fraud is a Growing Threat

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In a recent Bloomberg.com article hedge-fund fraud was identified as a growing concern for investors. A taskforce designated by the President Bush to investigate corporate crime is meeting in July to discuss this threat. Hedge funds are lightly regulated and according to the head of the taskfoce, Deputy Attorney General Paul McNulty, hedge funds are "a good example of an emerging threat that we would want to talk about and ensure that we are handling." In 2002 the Securities and Exchange Commission filed only 10 civil cases against hedge funds. In 2005 that number rose to 29. Investors should make every effort to protect themselves from this type of fraud.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aPWMbLnKs2CI&refer=news