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Compliance officer with Idaho hedge fund charged with fraud

A former chief compliance officer of an Idaho hedge fund was charged June 28 with fraud for misappropriating $650,000 in investor funds, according to the Securities and Exchange Commission.

David D. Hepworth, who had been employed by Interfund Capital Corp. in Ketchum, is alleged to have used the hedge fund between 2007 and 2009 to pay for nearly $30 million unauthorized personal expenses, among other charges, according to a SEC release.

Without admitting or denying the charges, Hepworth has agreed to be barred from the industry and association with any investment advisers. Hepworth currently lives in Swampscott, Mass.

The SEC claims Hepworth was able to carry out the fraud undiscovered because he failed to provide investor statements and he was misrepresenting the numbers. Hepworth was terminated at the hedge fund in 2009.

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  1. Fraud?? What about Grand Larceny?? Fraud seems a bit mild for what he did. Wonder what he’ll do in Mass.?