Mother & Son Team Charged With Hedge Fund Scheme

Filed in archive Hedgetalk on March 21, 2007

In a case being investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation, a mother and son team have recently been charged with operating a multi-million dollar investment hedge fund fraud scheme.

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Prosecutors say the son, Hakan Yalincak, charmed his way into the exclusive world of Greenwich high finance by posing as an heir to a wealthy Turkish family. He moved counterfeit checks and brokered deals with a Kuwaiti financier. Ayferafet Yalincak, his mother, told a federal judge last year that she attended meetings with investors and allowed her son to present her as a member of an exceedingly wealthy Turkish family who was going to invest millions in his hedge fund.

Prosecutors say Ayferafet Yalincak was responsible for an intended loss of $5.3 million and an actual loss of $3.9 million after some of the money was returned to investors.