https://www.sec.gov/litigation/complaints/2016/comp-pr2016-98.pdf http://m.mondovisione.com/media-and...hemed-to-collect-extra-fees-from-hedge-funds/
Realized profits were manufactured each month by selling options that would expire worthless, but rolling unrealized losses into the future. Unrealized losses were not reported properly so that management could continue to collect fees, despite not performing above the high water mark. Tens of millions of dollars have been lost since the volatility move of October 2014. "Karen the Supertrader" has been a bastion of hope for retail options traders and the poster child for Tom Sosnoff's Tastytrade online network.
Not quite. Her fraud was even worse. She booked premium received as realized gains. For example, she was selling in the money calls and booking the huge premium as realized gains and the assigned underlying (which was sold at the very low strike price) as unrealized losses. It wasn't that she was just hiding unrealized losses, she was fraudulently claiming what was realized gains.
The SEC complaint: http://www.sec.gov/news/pressrelease/2016-98.html I'm glad. Whenever people seem to be defying gravity there is always the catch. The man behind the curtain who really is no wizard at all. Chalk another one up and we'll probably see Karen the Super Trader in Allenwood as Karen the super prisoner.
Check out below, who is taking this whole show seriously? Why is the the anchor wearing a bra top like the slut she apparently is? Even hookers nowadays have a future in journalism? Goodness, a bit of browsing on this website brings about the lowest forms of life and how they all try to make a living off unassuming beginners and the lazy. It is almost hilarious if it was not so sad for the fact that there must be countless fathers who have families and who gamble away their savings or give up on an otherwise solid job to pursue "za dream". There should be a big, fat disclaimer everywhere "trading is not for everyone". https://www.tastytrade.com/tt/shows...episodes/trading-like-karen-in-spy-08-21-2014 I hope this will remain my only negative post in a longer while, but this time I just could not help it.
People would have warned her about what was going to happen selling deep OTM. Som1 needs to go to her court case with a big sign saying...... I TOLD YOU SO!! I see that Karen is still "making it very difficult" to give the premium back to traders XD.