Jason Konior

Full Report

Key Points

• Jason Konior, a former New York-based fund manager, orchestrated a fraudulent investment scheme through entities under the “Absolute” umbrella.
• He solicited funds from hedge fund investors by promising leveraged trading opportunities in a “first loss” program.
• Instead of legitimate trading, he misappropriated the money to pay prior investors, cover personal and business expenses, and benefit himself — forming a classic Ponzi-style operation.
• The SEC filed civil charges against him in 2012, resulting in an asset freeze and injunction.
• He was arrested in 2013 on criminal charges.

Overview

Jason Konior founded and managed Absolute Fund LP (established around 2006), along with related entities such as Absolute Fund Advisors and Absolute Fund Management, based in New York City. These operated as investment vehicles targeting hedge funds and other investors, purportedly offering a “first loss” trading program. Under this setup, investors contributed capital, which Konior claimed would be matched or leveraged up to nine times by his funds for securities trading in brokerage accounts. Investors would bear initial losses, with profits shared. In reality, no such matching funds or legitimate trading occurred on the promised scale, and the operation relied on new investments to sustain appearances.

Allegations and Concerns

The primary allegations centered on fraud: Konior misrepresented the investment program, falsely claimed funds were being placed in brokerage accounts for leveraged trading, and used incoming investor money to pay redemptions to earlier participants and for unauthorized personal/business uses. Authorities described it as a Ponzi scheme, where returns (or appearances of them) were paid from new capital rather than genuine profits. The SEC charged violations of antifraud provisions under the Securities Exchange Act, leading to an asset freeze in 2012. Criminal charges included securities fraud and wire fraud, with evidence from emails, texts, and calls showing deceptive assurances to investors.

Customer Feedback

Victim feedback, primarily from affected hedge fund investors, is overwhelmingly negative, focusing on non-repayment and deception. Specific examples include instances where investors demanded returns and were falsely assured funds were secure in accounts, only to later discover misappropriation. One review from a business context (potentially related to later activities) described dealings with Konior as a “bait and switch,” expressing intent to pursue grievances due to unfulfilled agreements and referencing past legal issues. No substantial positive reviews from investors in the scheme were evident; the focus remains on losses and distrust.

Risk Considerations

Engaging with Jason Konior or any ventures associated with him carries substantial risks across multiple dimensions. From a reputational standpoint, his federal conviction for fraud and the public record of operating a Ponzi-style scheme severely undermine credibility in any financial, investment, or business context, making trust difficult to establish or maintain. Legally, his history of SEC enforcement actions, civil injunctions, and criminal prosecution for wire fraud signals a high likelihood of ongoing or future regulatory scrutiny for any new activities he may undertake. Financially, the court-ordered forfeiture of $2.9 million along with fines and the demonstrated pattern of misappropriating investor funds point to significant liabilities, unresolved recovery efforts, and a heightened risk that any association could trigger due diligence red flags, transaction blocks, or financial exposure in investments, partnerships, or other dealings.

Business Relations and Associations

Konior’s primary associations were with his own entities: Absolute Fund LP, Absolute Fund Advisors, and Absolute Fund Management. The scheme targeted small hedge funds as investors (at least three specific ones defrauded). No ongoing legitimate partnerships or affiliations post-conviction are prominently documented in relation to the fraud period. Later mentions suggest possible involvement in other business consulting or funding solutions, but these appear limited and criticized.

Legal and Financial Concerns

Jason Konior faced significant legal and financial repercussions from his fraudulent activities. In 2012, the SEC initiated a civil action that included an asset freeze and permanent injunction for violations of antifraud provisions. Criminal proceedings followed, with his arrest in 2013 on charges including securities fraud and wire fraud. He pleaded guilty to one count of wire fraud in 2013 and was sentenced in 2014 to 46 months in federal prison, 3 years of supervised release, $2.9 million in forfeiture, and an additional fine. No public records indicate bankruptcy or further unpaid debts beyond the scheme’s restitution and forfeiture elements, though the fraud involved clear misappropriation of investor funds without any legitimate returns generated. No recent legal actions have been noted beyond the resolution of this case.

Risk Assessment Table

Jason Konior’s record shows a clear pattern of serious securities fraud through a Ponzi-like scheme that preyed on hedge fund investors with false promises of leveraged trading. Pros are virtually nonexistent in a financial trust context—any prior expertise in fund management is overshadowed by proven misconduct. Cons dominate: a federal prison sentence, financial penalties, and a permanent stain on credibility. Cautionary advice: Extreme diligence is warranted with anyone matching this profile. Avoid any financial dealings, investments, or partnerships without exhaustive independent verification, as the history indicates a high propensity for misrepresentation and misappropriation. Past behavior in this case strongly suggests elevated risk of similar issues recurring in business activities.