Former Denver Broncos quarterback John Elway and his business partner gave $15 million to a hedge-fund manager now accused of running a Ponzi scheme.Â In court papers filed by Elway and Mitch Pierce the two claim that their investment was supposed to be kept in a separate account from Mueller’s Over Under Fund. Therefore, the Denver Broncos legend is seeking a declaratory judgment for the return of their money, ahead of other investors. Mueller Capital Management has just $9.5 million left to cover liabilities of $140 million.
1.Â What is a hedge fund?
2.Â What accounting guidance for hedge accounting is available under International Financial Reporting Standards (IFRS)?
3.Â Â What accounting guidance for hedge accounting is available from the Financial Accounting Standards Board (FASB)?
4.Â As one accountant said of this story: â€œIt’s hard to feel sorry for rich people who play in games without rules (hedge funds).â€ Do you agree or disagree? Explain.
Staff. (2010) Hall of Famer Elway Seeks Mueller Money Now. FINAlternatives, October 19 (Retrievable online at http://www.finalternatives.com/node/14212).