A hedge fund manager accused of defrauding hundreds of investors of up to $185 million has been arrested in Miami, following months on the run from authorities.
Kirk Wright, the former manager of International Management Associates, invested millions on behalf of wealthy individuals including many famous American football stars.
He allegedly promised clients returns of up to 20 per cent on their investments, despite similar funds returning significantly less than that at the time.
However, reports suggest that virtually all of the money entrusted to Mr Wright has now disappeared.
Mr Wright failed to attend a court appearance after being charged with fraud by the US Securities and Exchange Commission (SEC), a warrant was issued for his arrest.
The case comes as another warning to investors about the possible pitfalls of investing in hedge funds – which can be less transparent than other investment funds.
Despite this, regulators both in the US and Europe have so far resisted calls for greater regulation of the trillion dollar industry, believing that it is not necessary.