Brian Kim Hedge Fund Manager's Career Marred by Ponzi Scheme and Arrest

Brian Kim's career as a hedge fund manager has been marred by a Ponzi scheme and arrest. He was charged with running a Ponzi scheme that defrauded investors out of millions of dollars.

Kim's scheme involved promising investors unusually high returns, which he claimed were generated through a complex trading strategy. He used the money from new investors to pay returns to earlier investors, rather than actually investing it.

This type of scheme is classic Ponzi, named after Charles Ponzi who famously used a similar tactic in the 1920s.

Brian Kim founded Liquid Capital Management LLC in 2002, a company that focused on futures trading with an office on Broadway in New York City.

He had a brief stint as an expert on CNBC's Squawk Box, appearing twice in 2009 to discuss derivatives trading.

Brian Kim, a 35-year-old hedge fund manager, was at the center of a $4 million Ponzi scheme that bilked at least 45 West Coast investors out of cash.

The scheme began in 2003 and continued through 2009, with Kim using his Manhattan offices to single-handedly swindle investors.

Kim allegedly used two appearances on CNBC's "Squawk Box" in 2009 to promote his bogus business and lure in more investors.

He created fake "pitch books" to make his business seem more legitimate, doctoring financial statements to show returns of 240% since 2000.

Kim targeted technology industry employees working in Silicon Valley and Washington State, who were likely drawn in by his charismatic personality and promises of high returns.

He faces up to 25 years behind bars if convicted of the grand larceny and scheme to defraud charges against him.

Kim's business, Liquid Capital Management, was also indicted by Manhattan DA Cyrus Vance.

The scheme was brazen, with Kim using stolen cash to fund lavish shopping sprees, ski vacations, and trips to Atlantic City casinos.