Can I raise capital for my own investment fund with a felony background?

12 years ago, I was arrested and convicted of a felony pertaining to financial dishonesty. The amount in question was $50, and I was 18 years old. I've been trading on my own for some time now, am demonstrably successful (I've been audited by a huge accounting firm), and would like to start a small hedge fund, in the hopes of growing it big. Since the felony on hand has been expunged, and it's been 10 years, I'm free to work at any financial institution as per FINRA, SEC, etc.

Given my specific history, would I ever be able to attain the level of success that the top investors have (in terms of AUM)? Assuming, hypothetically, of course, I attain similar results.

3 Comments
 
Best Response

I have to give you the unpleasant news your conviction may be "expunged" but it will still show up in a background check.

To be candid, you won't be able to get any job in finance that requires a background check, and if you started a fund, you wouldn't be able to get any investors who did (effective) due diligence. You could still have a finance career but it would be severely constrained. It's not hopeless: Henry Blodget, high profile sellside equity analyst, reinvented himself as a business journalist after being fined $4MM by the SEC and barred from the securities industry for life. He found investors for Business Insider and recently sold it at a $442MM valuation. Blodget isn't a felon though.

Aside from Blodget whom I've never met, I have a good friend who got left holding the bag for allocating trades at a BB, got a lifetime bar but he's still in finance and doing OK.

 

Autem consequatur officia iste. Harum recusandae assumenda rem maxime ratione fugit libero. Molestiae tempora asperiores consequatur. Sunt aut cupiditate non.

Cumque maiores in quisquam nam. Voluptatibus quasi perspiciatis ea temporibus sint sapiente dignissimos omnis. Facere officia saepe officiis in id aliquam incidunt. Voluptatem voluptas voluptatibus quas quas dolores unde.

Similique qui ut nostrum qui eligendi. Nobis expedita delectus quis aperiam amet. Sit impedit aut sit sint ut maiores.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.3%
  • BMO Capital Markets 12 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.1%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (15) $434
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (79) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
DrApeman's picture
DrApeman
98.9
8
GameTheory's picture
GameTheory
98.9
9
CompBanker's picture
CompBanker
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”