Andrew W.W. Caspersen was on the phone with an investor in the southwestern US with what sounded like an enticing deal: Invest a few million dollars alongside sophisticated institutions – as well as Caspersen’s friends and family – and earn a 15% annual return with minimal risks.

The investor was intrigued, and Caspersen's pristine pedigree added to the allure. He hailed from a wealthy, well-connected family and had years of experience working for top-tier financial institutions. In a few months, Caspersen gathered in tens of millions of dollars, including substantial funds from a charity backed by billionaire Louis Bacon, the founder of hedge fund Moore Capital Management.