U.S. prosecutors indicted the former executive managing director of a hedge fund for investment advisor fraud in connection with certain investments in the African mining sector.

As alleged in an indictment filed in the U.S. District Court for the Eastern District of New York, Michael Leslie Cohen defrauded a large charitable foundation by making material misrepresentations and failing to disclose conflicts of interest with regard to a proposed investment in an African mining company. Mr. Cohen allegedly failed to disclose that one of the sellers of the mining company owed Mr. Cohen several million dollars on a delinquent $18 million personal loan. In addition, Mr. Cohen allegedly acted in concert with others to cover up details of the mining transaction and obstruct an SEC investigation into the matter.

As a result of the alleged misconduct, Mr. Cohen was charged with one count of conspiracy to commit investment adviser fraud, one count of investment adviser fraud, one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to obstruct justice, one count of obstruction of justice and one count of making false statements.

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