PHILADELPHIA (AP) — Federal prosecutors in Philadelphia say that two hedge fund executives have been charged in a scheme that defrauded institutional investors of more than $300 million.
An indictment filed Thursday says that Helmut Kiener, a 53-year-old German billionaire who founded the hedge fund group K1, partnered with a North Carolina man to swindle Barclays Bank, Bear Stearns and BNP Paribas. Court documents say Kiener used some of his ill-gotten gains to buy oceanfront real estate in Florida, an executive jet, a helicopter, luxury cars and boats.READ MORE: Gas Prices Continue To Fall In New Jersey, Pennsylvania And Delaware
Kiener was convicted of similar charges in Germany in 2011. He was sentenced to more than 10 years in prison.READ MORE: Many Families Expected To Travel To Jersey Shore For July 4: 'I Gave Up Other Things Just To Make It To Ocean City'
Sixty-one-year-old John Tausche of Blowing Rock, N.C., was charged with bank fraud and money-laundering. His lawyer says he’s cooperating with the government.
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