Hedge Funds

NASD targets hedge fund frauds


The NASD filed three enforcement actions alleging multi-million dollar fraudulent hedge fund offerings, stepping up its focus on the sale and marketing of hedge fund strategies to retail investors.

The three actions include allegations against Win Capital Corporation, Shelman Securities and its chairman Mark Parman, and a settled complaint against ex-Allstate Financial Services man, Neil Brooks.

In the case of Win Capital, the NASD charged the firm's chairman Steven Bayern and its president Patrick Kolenik with securities fraud in connection with a hedge fund offering. According to the watchdog, the duo failed to disclose vital material facts relating