A Cincinnati, OH, man has become the subject of accusations that he operated a multimillion-dollar Ponzi scheme through his hedge fund business. Glen Galemmo of East Walnut Hills, recognized locally for his widely touted success in money management, is being sued by investors in a complaint filed on July 20th in Hamilton County. The plaintiffs allege that Galemmo ran a fake investment program that defrauded perhaps hundreds of victims out “tens if not hundreds of millions of dollars.” A possible federal investigation could also be in the works, as the IRS has involved itself in the matter and searched company offices.
For over the past decade, Galemmo has been the principal of Galemmo Investment Group, Queen City Investment Fund and a number of other investment vehicles, with assets under management said to be $200 million. The financial advisor claimed early on to achieve over 60% yearly growth, while from 2006 to 2011 he bragged that his funds had expanded 432% without a single year of losses. In 2008 the S&P 500 was down 36%, but Galemmo made out like a bandit with 9.84% gains on the market. How was such magic possible? According to the complaint, he had a special formula to keep the cash rolling in:
Mr. Galemmo would tell his customers that his strategy was to buy low, sell high, and react quickly to market changes.
Say no more. Looks like someone just let the cat out of the bag; everyday folks can be zillionaires now. Despite supposedly reeling in what would have been over $60 million in compensation for his profit record from 2006 to 2011, Galemmo rang up almost $38,000 in back taxes last year.