NIR Group manager investigated on charges of investment scam

Corey Ribotsky, Managing Member of NIR Group, a Roslyn, New York hedge-fund, is under the investigation of the US criminal authorities on charges of defrauding investors about their returns and the holdings of his various funds, the Wall Street Journal reported with the reference to the people familiar with the situation.

The U.S. Securities and Exchange Commission, Federal Bureau of Investigation and the U.S. attorney's office in Brooklyn want to establish if Ribotsky lied to investors as stock prices fell during the credit crisis. So far Ribotsky was not accused by authorities.

The Journal adds that Ribiotsky has said he has $770 million under management. Meantime, Ribotsky's lawyer said the hedge fund manager and NIR "have no knowledge of any criminal investigation and have not been contacted by any authorities."