A North Carolina businessman, Keith Simmons, has been charged with fleecing investors in his hedge fund to the tune of $35 million.
Simmons has been charged with conspiracy, wire fraud and securities. Simmons called his hedge fund Black Diamond Capital Solutions and raised money from 240 investors, claiming to invest it in foreign currencies. According to authorities, none of the money raised was used to invest in the claimed asset class. $20 million was used to repay investors between 2007 and September 2009. The rest were used to purchase real estate, claim business expenses and arrange luxuries like limousines, chartered flights and hotel rooms for him and his employees.