Last month, George Heckler, an unregistered investment advisor and hedge fund manager based in Charleston, South Carolina, pleaded guilty to running a “Ponzi-like” scheme by which he fraudulently took in nearly $100 million in investor funds. Heckler perpetrated the fraud through his two hedge funds, CV Special Opportunity Fund LP and Cassatt Short Term Trading Fund LP, and through other defunct entities that Heckler owned or controlled, including TA 1 LLC, CVAF 1 LLC, and School Street Capital LLC.
Heckler’s guilty plea is available here.
Between 2009 and 2019, George Heckler “lied to investors about nearly every aspect” of the funds and other entities, including by providing investors with false account statements and other reports showing that the funds consistently generated positive returns, when in reality, investor funds were used for purposes not disclosed, including to redeem existing investors and for Heckler’s personal use. The S.E.C. estimates that over the course of the fraud, Heckler took in at least $90 million in investor funds, $30 million of which he used to pay off prior investors, and at least $1 million he diverted to line his own pockets. The S.E.C.’s civil complaint is available here.