A local radio host who splits his time between spouting right-wing dogma and offering investment advice has been hit with a cease-and-desist order from the Securities and Exchange Commission.
George R. Jaresky, Jr. hosts a show on KTEK-AM 1100 (Official motto: "Yes, We Exist") and is semi-syndicated in a handful of other cities and on local cable.
The SEC filed an order March 22 claiming Jarkesy, his partners and his company John Thomas Capital Management defrauded investors via two hedge funds and improperly bloating their fees.
The SEC says Jarkesy steered "millions of dollars in bloated fees to" him and his partners, and provided a few e-mails to show that a Jarkesy partner named Anastasios "Tommy" Belesis was calling the shots, despite pitches that said the radio host was "responsible for all of the investment decisions" of the hedge funds.
And, oh: Jarkesy and JTCM also "recorded arbitrary valuations without any reasonable basis for certain of the Funds' largest holdings," the SEC said.
Jarkesy's funds also told investors they had some well-respected assistance: They said KPMG was their auditor and Deutsche Bank was their prime broker. Neither claim was true, the SEC says.
The hedge funds claimed to its 120 investors to have $30 million in investments in 2011, the SEC says.
Among the e-mails which show Belesis butting into the funds' business decisions in what the SEC described as "often in a profane and belligerent manner":
In March 2009, the director of a company that JTCM and Jarkesy had steered to JTF asked to meet with Belesis before paying for JTF's services . In response, Belesis erupted at Jarkesy : "GEORGE WHAT KIND OF BULL SHIT IS THIS".
Jarkesy's reply indicates his allegiance to Belesis: "I just told him to send the stock and money, sign the document or get lost," he wrote. "I think this will get done today. Nobody gets access to Tommy [Belesis] until they make us money!!!!!"
Another bit of e-mail fun, as described by the SEC:
Jarkesy used his role as manager of the Funds to enrich Belesis and JTF, and kept an appreciative Belesis apprised of his efforts. For example, Jarkesy giddily wrote to Belesis in March 2010: "[W]e are all going to make so much fucking money this year, the clients of John Thomas are going to have a banner year....Write yourself a check and get ready to cash it $45 million."
Belesis replied, "Sounds great buddy, look forward to it.... Lol [laughing out loud], to which Jarkesy responded, "Your [sic] going to not stop laughing when you are liquidating everyones [sic] stock."
We've tried to contact Jarkesy without success and will update if we do hear from him.
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