HEDGE FUND INVESTIGATIVE DUE DILIGENCE

		Donald O'Neill promised to be "ushering in a new era of transparency" with the hedge fund operation he opened ....The CFTC brought suit against O'Neill charging that O'Neill stole $10.6 million from 29 investors... Instead of earning market-beating returns, authorities say, investor cash went into O'Neill's $3 million Florida home and was used to cover over $800,000 in gambling losses, wine auction purchases and payments to a call girl and mistress. -US News & World Report. [CFTC complaint]

The performance track record of hedge funds and their promise of alternative investment strategies have attracted $560 billion from investors which is expected to top $1 trillion by 2004.

THE HARMON FIRM conducts cost-effective primary or enhanced due diligence for potential hedge fund investors. Our inquiries and confidential report are tailored to assist the particular hedge fund investor.

Investors beware. The world's bad actors have taken note of the opportunities presented by huge pools of investor capital which is managed and invested in an unregulated environment. We bring a keen investigative eye to spot them.

		A Chicago hedge fund manager and others were convicted of conspiracy to commit racketeering in an organized crime and labor union pension fund fraud and kickback scheme. The scheme, involving elements of the Luchese and Bonanno crime families, would have generated $150,000 - $200,000 in kickbacks for each $1 million of union pension fund assets invested. -U.S. v. Black et al. [court opinion]

Protect your investment through due diligence before you invest. First, insure that a fund's investment approach and philosophy are appropriate for your investment needs by reviewing a fund's performance characteristics and general profile through HFR Database. Then, answer this question through due diligence: Do I really know the management of this hedge fund? We can answer that question.

We even review a hedge fund's anti-money laundering program to see if the hedge fund has taken action to place the fund off-limits to con artists, terrorists and criminals of all stripes. You will not find that expertise elsewhere.

For more information, or to learn how THE HARMON FIRM can help you, contact us by telephone at 212-333-8690 or by e-mail at duediligence@harfirm.com

		The Securities and Exchange Commission filed a civil-fraud complaint against hedge-fund Beacon Hill Asset Management, several weeks after the firm shocked investors with losses topping 50%. The complaint filed in the U.S. District Court in Manhattan alleged that during the period from July through September 2002, Beacon Hill reported net asset values and returns to its investors "that it knew or should have known were materially overstated." The SEC said that in September Beacon Hill executives told the firm's prime broker, Bear Stearns that the hedge funds were valued at $756 million. But on Oct. 1, Bear Stearns presented their calculation of the value of the funds, and it only added up to $256.9 million. Court approval be required for an investor to withdraw money from Beacon Hill Funds. - The Wall Street Journal [SEC complaint]