On October 5, 2017, Westchester County hedge fund manager Michael Scronic was arrested and charged with one count of securities fraud and one count of wire fraud for allegedly operating a $19 million Ponzi scheme.  Authorities allege Scronic, manager of the Scronic Macro Fund (the “Fund”), obtained more than $19 million from approximately 45 investors since April 2010 through misrepresentations as to the Fund’s performance and issuance of falsified account statements.  Scronic allegedly held out to investors that the Fund had achieved positive returns in all but one quarter between January 2012 and June 2017, when in actuality the Fund had only achieved a positive return in its first quarter of operation in 2010 and had lost money each quarter since.  Scronic is accused of issuing falsified account statements to investors that showed substantially higher Fund assets than existed in reality, purportedly to cover up trading losses and diversions of investor monies for personal expenses.  Authorities further maintain Scronic failed to fulfill redemption requests made by several investors in mid-2017, either ignoring the requests or informing investors that delays were caused by personal issues.
U.S. v. Scronic, 17-mj-7351-cr (S.D.N.Y.)

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