Another Cautionary Note to Hedge Fund Investors


On December 1, 2010, the Securities and Exchange Commission charged the manager of Opulent Lite, a San Francisco-based hedge fund, with fraud for concealing trading losses. According to the SEC, Neil Godbole, Opulent’s manager, sought to mislead his investors by underreporting Opulent’s losses. In September 2008, Godbole reported trading losses of $859,000, when the fund had actually lost $4 million. Godbole also reported that the fund’s asset value was $29 million when it was only $19 million. Then, in December 2008, after the fund had fallen below $14.4 million in assets, Godbole reported to investors that the fund was valued at more than $26 million. Naturally, Godbole paid himself a management fee in 2008 based upon the inflated value of the fund.

Alan R. Perry,a partner in Page Perry in Atlanta stated ” hedge fund investors need to be aware of the types of unscrupulous activities that certain hedge fund managers have engaged in during recent years. Investors have lost millions as a result of these types of improprieties.”

Page Perry is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 40 occasions. Page Perry’s attorneys are actively involved in representing individual and institutional investors regarding their hedge fund investment problems. For further information, please contact us.