ByNate Raymond|BOSTON A Massachusetts hedge fund manager has been arrested and accused of misappropriating millions of dollars from investors and engaging in a Ponzi-like scheme, U.S. authorities said. Yasuna Murakami, who managed Cambridge, Massachusetts-based MC2 Capital Management LLC, was arrested in Vermont on Saturday and charged in a criminal complaint with wire fraud, according to papers unsealed in federal court in Boston on Monday. The U.S. Securities and Exchange Commission filed a related lawsuit against Murakami and Avi Chiat, his partner at MC2, and their firm, accusing them of defrauding investors about the funds' performance after raising $15 million. The SEC said that since 2008, Murakami, 44, also stole more than $8 million invested with him, and used an additional $1.3 million to make Ponzi-like payments to earlier investors by misappropriating funds from later ones. Massachusetts Secretary of the Commonwealth William Galvin brought an administrative action in January against Murakami for operating a Ponzi scheme. Murakami was arrested in Vermont on Saturday as he crossed back into the United States from Canada, a spokeswoman for Acting U.S. Attorney William Weinreb in Boston said. Lawyers for Murakami and Chiat did not immediately respond to requests for comment. http://www.reuters.com/article/us-hedgefunds-massachusetts-fraud-idUSKBN18I1ZL
That should give you an idea of how prevalent this crap is...And these are only the folks getting caught doing it! Scumbags!