Cornerstone found guilty of fraud


New York-based hedge fund Cornerstone Capital Management and its founder, Joseph Profit II, received lifetime injunctions from a Georgia court after the U.S. Commodity Futures Trading Commission charged both with fraud.

The court’s consent order, handed down on Nov. 14, found Profit guilty of falsifying profits in the Icon Fund, a hedge fund offered by Cornerstone. “Based on Profit’s own admissions, the reported performance of the Icon Fund is false, and the Icon Fund has never been profitable,” the court found. Profit signed the order, consenting on behalf of himself and the firm. Profit could not reached for