Today at 1pm in Hartford, Conn. federal court executives of Ridgefield-based hedge fund New Stream Capital were indicted on 19 counts of conspiracy, securities fraud and wire fraud. Tom Carson, DOJ pressman, confirmed the arrest of David A. Bryson and his co-founder Bart Gutekunst along with his CFO Richard Pereira last week. The case has been unsealed today. I first reported in 2009 the hedge fund was being investigated for investor fraud by the FBI at Hedge Fund Implode and continued to report on the fund’s bankruptcy and investor lawsuits for DealFlow Media and Forbes over the last two years.
The federal documents unsealed today also mentions a co-conspirator #2 labeled as a marketing and client relations person. This would be David’s sister, Tara Bryson, who I first reported was arrested for growing a pot farm in her Newtown, CT mansion with her boyfriend at Forbes. Tara Bryson went on to run a goat cheese farm and sell at local farmer markets in Fairfield County which include New Canaan. She was not charged with her brother today but did settle with the SEC in their civil suit against the fund for overvaluing assets and reaping millions in fees.
Also not in handcuffs today was Perry Gillies, the former GE executive and chief operations guy New Stream brought in to help communicate with investors and manage staff.
David and Bart used their homes as collateral for the $5 million bond. Rich, the CFO, only had to post a $300,000 bond. David’s wife Kristin Bryson was in court with him and does external public relations for IBM. The $3 million Bryson home in Ridgefield is up for sale – they bought it while David was running New Steam in 2006. All three plead not guilty and went home to their families in Ridgefield and Weston. The New Stream executives are facing over 100 years in jail if convicted on just five of the 18 counts of securities and wire fraud.
I’ve reported more on the history of New Stream, the names of funds that invested in New Stream, and how the investors led lawsuits built the government’s case for them at Growth Capitalist.
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