The investigation into the hedge fund was part of President Barack Obama's Financial Fraud Enforcement Task Force that was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes, according to the U.S.
NEWSTREAM CAPITAL FULL
From June through August 2008, while the financial meltdown was in full swing, those reimbursement fees increased substantially to more than $2.2 million per month. Company type is Private company limited by shares.Browse more information on. Its company status is Live.Its business name is. In addition, the documents state, "reimbursement" fees from the master fund in the three months prior to the restructuring were $887,652 per month. This is detail infomation of NEW STREAM CAPITAL LIMITED, NEW STREAM CAPITAL LIMITED is a Hong Kong company, located on Hong Kong. While New Stream earned almost $35,000 in management fees from the master fund in November 2007 prior to the restructuring, it earned $318,561 in management fees in April 2008 - an 820 percent increase, court documents state. The executives, court officials claim, had a lot at stake at the time, having "dramatically boosted" management fees as part of new formulas put into place during the 2007 restructuring. Andrew Tsai is the Chief Investment Officer. To appease Gottex, the complaint states, Bryson, Pereira and Gutekunst devised a plan in which they secretly revised the earlier restructuring plan in March 2008 to give seniority status to Bermuda Fund investors. Chalkstream Capital Group is an investment firm based in New York City. At the time, the fund had about $750 million in assets. Gottex Fund Management based out of Boston, which had previously enjoyed priority status as part of the Bermuda Fund, objected to the change and attempted to redeem its more than $300 million investment, court documents state.
The problems for the hedge fund began shortly before the meltdown, around November 2007, when New Stream decided to restructure its feeder funds while dramatically increasing their management fees.Īs part of the restructuring plan, Bryson placed all of the feeder funds on equal footing in the event of a liquidation.
Pereira is expected to be sentenced on Thursday. Bryson was sentenced on Tuesday to 33 months in prison followed by three years of probation. All Rights Reserved.Gutekunst was sentenced on Wednesday afternoon to 30 months in jail. Lawyers for the men didn't immediately return phone calls seeking comment Tuesday.Ĭopyright ©2022 Dow Jones & Company, Inc. They face up to 20 years in prison on each fraud count.
Gottex, which hasn't been accused of wrongdoing, didn't immediately respond to a request for comment Tuesday.īryson, Gutekunst and Pereira were charged in a 19-count federal grand jury indictment unsealed Tuesday on charges of conspiracy, securities fraud and wire fraud. The fund and its affiliates filed for bankruptcy in March 2011 after several failed restructuring attempts, the regulator said. Its largest investor with nearly $300 million invested at the time, the Securities and Exchange Commission alleged in a separate civil lawsuit filed against the New Stream officials.Īs the financial crisis worsened in September 2008, New Stream was forced to suspend redemptions after it faced $545 million in redemption requests, the SEC said.
The executives allegedly restructured New Stream's structure to give priority to
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