Kevin Quinn, the Jefferies broker who tried to entice Fidelity Investments traders to do more business with his firm by throwing lavish parties for them, one complete with strippers and private jets, is opening a hedge fund called Cottage Capital, Hedge Fund Alert reports.

Banned from the brokerage and mutual fund industries for life, Quinn is nonetheless free to open a hedge fund.

He is starting Cottage Capital with $50 million that he will use as loans to small corporations.

Jefferies paid $10 million and Quinn paid $468,000 to settle regulatory charges against them, without admitting wrongdoing.

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