March 8, 2008

I knew, and wrote, some time ago that the hedge funds were mostly Ponzi-type frauds. Wealthy people looking for a safe place for their investments, put enormous sums of money into these organizations, enriching their founders beyond belief. One of my contacts is in the FBI’s White Collar Crime section and about a year ago told me, in confidence, that the entire hedge fund complex was nothing but a fraud; that there was almost no money left in any of them. He said those who were running this had been making huge deposits in Israeli banks from whence it could never be recovered and then when the investors discovered that they had been defrauded and they could not get their money back, the perps, like the army of owners of fake mortgage companies, would quickly join their funds. Let me say this, friends, if you or your relatives put money into a hedge fund, just try to get it out. You can’t, of course, because it isn’t there any more. And what can you do about it? Nothing. And many hedge fund operators have wisely donated huge sums of money to Republican and presidential entities, ensuring that investigations would be thwarted long enough to allow the perps to cash out their American-based assets (like billion dollar homes, yachts, summer estates and office buildings) and flee to a warmer climate where they only have to worry about Hezbollah rockets and not the FBI.