Elsewhere online
April 04, 2016

Wall St. Manager Was Duped Into Suggesting Foundation Invest in Alleged Fraud Scheme

James McIntyre, a managing director at Moore Capital Management, is the previously unidentified person who unwittingly recommended that a foundation affiliated with his hedge fund put nearly $25 million into an allegedly a fraudulent investment scheme run by a private-equity executive, The New York Times reports, citing unnamed sources. The executive behind the alleged scheme, Andrew Caspersen, is accused of losing the foundation’s money in risky options trading. 

Mr. McIntyre, whom federal prosecutors did not identify, was a former Princeton University classmate of Mr. Caspersen's, although it’s unclear how well they knew each other. He was contacted by Mr. Caspersen last fall with the investment pitch, and the Moore Charitable Foundation invested $24.6 million on Mr. McIntyre's recommendation. In March, Mr. McIntyre and another unnamed Moore employee suspected something was awry and tried to redeem the money. Mr. McIntyre later reported his concerns about the investment to his employer. 

Mr. McIntyre didn't know the money would go into an investment vehicle that was under Mr. Caspersen's personal control, federal prosecutors said. Mr. Caspersen, who was with private-equity firm the Park Hill Group, was charged last week with attempting to defraud multiple investors out of $95 million.