Hedge Fund Manager Neal Goyal Reveals Details of Ponzi Scheme

Posted on July 22nd, 2015 at 5:00 PM
Hedge Fund Manager Neal Goyal Reveals Details of Ponzi Scheme

The Ponzi scheme lasted eight years and cost clients millions of dollars. After receiving a J.D. from the Thomas Jefferson School of Law in San Diego, Neal Goyal he started a hedge fund. Using his family’s network, he was able to tap into the wealthy, tightknit Hindu community in downtown Chicago.

In the beginning Goyal claims that his intentions were pure. But after first quarter losses of 8% he feared failure. In hopes that he could make back his losses, he falsely reported results. The next quarter did not return what he had expected and he once again falsely reported his results. Goyal claims that his praise and notoriety as an investor among his family and friends led to an excitement that he could not risk losing. In the following seven years he continued to deceive clients, who mostly were family and friends.

Goyal lived lavishly during this time, taking trips abroad, spending over two million dollars on luxury car leases, and supplying start-up funds for small businesses operated by family members. However, after 2009, prosecutors say that he stopped making trades or investing any of the capital from his two funds, Caldera Equity Fund and Blue Horizons Global Equity Fund. Despite running his luxurious North Michigan Avenue office with daily strategy meetings, he had no brokerage accounts open with which to trade.

Related Attorneys: James J. Eccleston

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