In mid-2008, hedge fund manager Steve Maiden was riding high. The self-assured Maiden had launched his own fund in late 2006 and it was substantially outperforming the market. Investors wanted in, and Maiden's personal wealth exceeded even his own lofty expectations. But then things began to fall apart. The global financial crisis hit and several of Maiden's large investments were imploding. His efforts to capture some value hinged on reaching an agreement with several partners. To buy time until an agreement could be reached, Maiden began to falsify his fund’s returns to investors. He continued to do this for over two years.
In May 2013, Maiden pleaded guilty to securities fraud and was given a seven-year prison sentence, leaving behind his wife and two young children.
The Steve Maiden case series (consisting of UVA-OB-1437, UVA-OB-1438, and UVA-OB-1439) provides an inside look at the rise, demise, and resurrection of an ambitious young man whose profile is not unlike that of many MBA students. It gives students a unique opportunity to witness events as they unfolded, and read Maiden’s own words about his thoughts and feelings as things unraveled, as well as his candid reflections on what he learned from the experience.
