Another Fraud: Icelandic Glaciers
Here is an article on the Canadian Version of the Madoff Scandal. The scandal concerns a dentist who started a hedge fund to invest in Icelandic Glaciers. Now he has been ordered by authorities to stop selling his fund. Click Here To Skip The Introduction & Read About The Icelandic Glaciers Fraud
Article Introduction (Via Mish’s Global Economic Trend Analysis)
Otto Spork, a former dentist, is facing allegations that the fund’s returns were juiced by unsubstantiated valuations in several underlying investments in Icelandic glaciers. The Ontario Securities Commission has ordered Mr. Spork and related parties at Sextant Capital Management Inc. to temporarily stop selling his fund in Canada, alleging it is “investing illegally” in firms with rights to the glaciers.
Mr. Spork is the founder of Toronto-based Sextant Capital, whose star fund is the Sextant Strategic Opportunities Hedge Fund, which had assets of $53-million at the end of last month. According to OSC staff, the fund had 5 per cent of its assets in cash, stocks, future contracts and equity in private companies
