This is the mark of a small, amateurish hedge fund: Having the CFO serve also as chief trader. That's hardly going to inspire big pensions to take a close look at investing in you. So perhaps we should not be surprised that the chief trader and CFO of Boston Provident has been arrested and accused of stealing more than $1.3 million from the hedge fund.

According to Reuters, Ezra Levy wired $726,000 from the fund to his personal Washington Mutual bank account in monthly installments from January to October this year. On other occasions, according to charges, he generated a $600,000 profit for himself by using Boston Provident to buy shares at inflated prices from an account he controlled. He faces many years in jail.

You have to fault firm management for some obvious control deficiencies. This sort of structure will not fly at top hedge funds.  

For more:
- here's the article

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