FBI: Late to the Party Again- Don’t worry, Chip Burrus is here to help

Having wrapped up that whole terrorist thing the FBI is now jumping on the Hedge Fund Boogeyman bandwagon according to this article in Bloomberg today.

``I'm not interested in civil fines,'' he said. ``If I'm coming in and I'm looking, there are allegations of criminal misconduct. There's obviously a different pucker factor that comes when you start talking to an FBI agent

.
In other words, armed men show up and threaten criminal charges unless there is full cooperation (meaning just admit you did something wrong and we’ll go extort someone else) and a few employees are tossed under the bus. These are Elliot Spitzer style tactics of government intimidation and thuggery with the primary concern being headline and press release generation.

The article goes on to quote Mr. Fife:

``It is an emerging threat because of the dollar value and the number of institutions that are actively taking a look at this,'' Burrus said. ``People that maybe aren't expecting to have this type of a risky investment in their portfolio end up taking a bath.''

It’s an emerging threat because investors weren’t expecting that type of investment? So if an investor doesn’t do his research or ignores the dozens of warnings in the offering documents the FBI will investigate?

I feel safer already.