×

'Hedge fund of the year' reportedly got duped by radio star's alleged Ponzi scheme

  • The hedge fund that sports talk-radio star Craig Carton allegedly scammed out of millions of dollars is Brigade Capital Management, according to Sports Illustrated.
  • Craig Carton was arrested Wednesday in a fake discount ticket business that the government says was more like a Ponzi scheme.
  • Brigade Capital Management won Absolute Return's "Management Firm of the Year" in March for its strong performance in the hedge fund industry.

The unidentified hedge fund that sports talk-radio star Craig Carton allegedly scammed out of $4.6 million was named "management firm of the year" in March, according to Sports Illustrated.

The firm is Brigade Capital Management, Sports Illustrated said in its report Wednesday.

Brigade has $18 billion under management, according to trade publication Absolute Return, which named it firm of the year for its strong performance in the hedge fund industry.

The New York Times reported that a Brigade fund made a filing with New York state last December showing a debt owed by two corporations controlled by Carton.

The hedge fund firm did not immediately respond to a CNBC email request for comment. A phone call to its offices before business hours was not picked up and there was no voicemail. Sports Illustrated said the firm's general counsel, Aaron Daniels, declined to comment.

Carton was arrested Wednesday in a fake discount ticket business that the government says was more like a Ponzi scheme.

Prosecutors said the co-host of the morning show on New York's WFAN negotiated financing from a hedge fund to help purchase tickets in return for a cut of the profit from the resale of the tickets. The government did not identify the hedge fund.

Carton, who has co-hosted the "Boomer & Carton" show with Boomer Esiason since 2007, was suspended by WFAN pending an investigation. Carton has not commented about the charges.

See the Sports Illustrated report here.

— CNBC's Liz Moyer contributed to this report