Ex-Jefferies Fund Manager Accused in Water-Vend Scam
The US Securities and Exchange Commission headquarters in Washington.
Photographer: Samuel Corum/BloombergA former Jefferies Financial Group Inc. hedge fund manager was charged with fraud by federal prosecutors in New York for allegedly directing the purchase of nearly $100 million in bonds tied to a water-vending machine business.
Jordan Chirico is accused of directing the Jefferies fund, 352 Capital, to purchase bonds funding a Washington state business that purported to operate a network of water vending machines, according to an indictment unsealed Thursday in New York federal court. But in many cases, the machines didn’t exist, prosecutors allege.