Currency Trader Allegedly Defrauded Investors Out Of $14 Million
The Securities and Exchange Commission on Thursday accused a New York City-based trader of defrauding investors out of millions of dollars by covering up trading losses at her currency-focused hedge fund. According to the SEC, since at least January 2012, Haena Park, 40, lied about the profitability of her strategies for trading foreign currencies and futures to solicit investments in her fund, Phaetra Capital. In that time, she raised at least $14 million from more than 30 investors while suffering more than $16 million in trading losses, the SEC said. The complaint alleges Park used fictitious monthly statements to cover up her losses and paid back early investors with new money invested in the fund, an arrangement the SEC described as "Ponzi-like." Park attended Harvard University and was employed at various financial firms between 1998 and 2008, according to the SEC's complaint. The SEC is bringing a civil action against Park while the U.S. Attorney's Office for the Southern District of New York will pursue criminal charges. Park ran her fund out of an office on 6th Avenue according to an SEC filing. Park didn't respond to a request for comment.
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