The 'Daedalus' scam

TEXT OF STORY

SCOTT JAGOW: Here's one way to ruin a promising business career: Get busted for a multi-million dollar investment scam while you're still in school. Stacey Vanek-Smith reports.


STACEY VANEK-SMITH: New York University student Hakan Yalincak got investors to sink millions into a nonexistent hedge fund. And wait 'til you hear who fell for it.
LANCE KIMMEL: These are among the most sophisticated or accredited people in the world.

Securities Attorney Lance Kimmel says investment gurus and hedge fund managers were duped. Most said they invested based on the 22-year-old's charisma. Kimmel says even after Enron and SEC crackdowns, he's not surprised.

KIMMEL: I'd like to think that perfect documentation is what does a deal, but I've practiced law long enough to know that it is feeling comfortable and trusting the person to whom you're going to write a check.

Yalincak pleaded guilty to bank and wire fraud. He faces up to 50 years in prison.

I'm Stacey Vanek-Smith for Marketplace.

About the author

Stacey Vanek Smith is a senior reporter for Marketplace, where she covers banking, consumer finance, housing and advertising.

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