Feds Accuse Fund Manager of $1.5M Ponzi

MANHATTAN (CN) - Jason J. Konior, founder of Absolute Fund Advisors and Absolute Fund Management, swiped $1.5 million from clients to pay off previous investors and himself in a Ponzi scheme, federal prosecutors said.
     Konior founded Absolute in 2006, according to the two-count sworn complaint from an FBI agent. Komior is charged with wire fraud and securities fraud. His companies are not named as defendants.
     The SEC sued Konior and his Absolute companies in a similar, civil complaint in May 2012.
     FBI agent Patrick Shaw, in the new complaint approved by the U.S. Attorney's Office, said Konior made the Ponzi payments form late 2011 through May 2012. He took $500,000 by wire transfers from a Florida-based hedge fund and promised to invest it, but used the money to pay off previous investors, and himself and his business, according to the 12-page complaint.
     The Florida hedge fund, Hedge Fund A, asked for its $500,000 back and got zip, according to the complaint.
     Bonior also skimmed money from two small hedge funds based in New York City, the FBI agent said: $300,000 from Hedge Fund B and $700,000 from Hedge Fund C.
     Konior promised them all that he would contribute Absolute's money to their investments, but he didn't, and he didn't return the money either, according to the complaint.
     The FBI agent asked for Konior to be arrested.