Karen the Super Trader

Discussion in 'Options' started by JBuck, May 4, 2020.

  1. Pekelo

    Pekelo

    Last edited: May 6, 2020
    #21     May 6, 2020
  2. Pekelo

    Pekelo

    Well, as lots of HF manager/ponzi runner she started out with good intentions then when the market didn't go the right way, it was easier to cook the books than coming clean. So I guess cooking the books was intentional.

    Also the set up of her fund was fairly unusual, that is why she was able to keep losses out of investors' eyes.
     
    #22     May 6, 2020
    MKTrader likes this.
  3. MKTrader

    MKTrader

    Of course people loved the story....the retired accountant grandma who figured out how to beat Wall Street...like your other post said, it sounds like the plot of a feel-good movie.
     
    #23     May 6, 2020
  4. JBuck

    JBuck Guest

    Apparently so. If you read the SEC's decisions regarding the case you'll note that the word fraud appears numerous times. And, in the initial decsion in 2019 Ms. Bruton "...consented to entry by the district court of a final judgment against her. The judgment ordered Bruton to pay disgorgement and civil monetary penalties. It also permanently enjoined her from future violations of Advisers Act Sections 206(1), (2) and (4) and Rule 206(4)-8 thereunder."

    In civil law Disgorgement is repayment of ill-gotten gains that is imposed on wrongdoers by the courts. Funds that were received through illegal or unethical business transactions are disgorged, or paid back, with interest to those affected by the action. Disgorgement is a remedial civil action, rather than punitive civil action.

    In the end she and Hope Advisors paid back millions in ill gotten gains. If you carefully read some of the SEC's documents you'll see that her intent was fraudulent. At least that's how I read the words.

    Here are links to some of the relevant documents;

    ORDER DENYING PETITION TO LIFT TEMPORARY SUSPENSION AND DIRECTING HEARING
    https://www.sec.gov/litigation/opinions/2018/34-84627.pdf

    Initial Decision barring Karen Bruton from the securities industry
    https://www.sec.gov/alj/aljdec/2019/id1386cff.pdf

    NOTICE THAT INITIAL DECISION HAS BECOME FINAL
    https://www.sec.gov/alj/aljdec/2019/ia-5419.pdf

    Best

    J Buck
     
    #24     May 6, 2020
    fortunex likes this.
  5. Atikon

    Atikon

    Currently listening to Confidence Game, and I'm almost 100% sure Ackman paid for it himself.
     
    #25     May 7, 2020