Category Archives: Hedge Fund
Citigroup Will Pay $180 Million to Settle SEC Case
The Securities and Exchange Commission (“SEC”) announced that Citigroup Global Markets, Inc. (“CGMI”) and Citigroup Alternative Investments LLC (“CAI”) have agreed to settle charges concerning two now-defunct hedge funds – the ASTA/MAT fund and the Falcon fund. According to the Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act… Read More »
SEC Charges San Diego, CA, Investment Firm and its Owner with Securities Fraud
On November 10, 2011, the SEC brought charges against a San Diego-based investment advisory firm and its president for securities fraud based on its failure to disclose a conflict of interest to investors and falsely represented the liquidity of a hedge fund they managed. The SEC claims that Western Pacific Capital Management LLC and… Read More »
SEC Stops Fraud by Hedge Fund Manager
On August 31, 2011, the SEC announced it froze the assets of a Chicago-based money manager and his hedge fund advisory firm for lying to prospective investors in their startup hedge fund. The SEC claims that Belal K. Faruki and his firm, Neural Markets LLC, solicited highly sophisticated individuals to invest in the “Evolution… Read More »
SEC Charges Hedge Fund Manager for Misappropriating Investor Assets
On January 28, 2011, the SEC received a court order freezing the assets of a Stamford, Connecticut-based investment adviser and its principal, Francisco Illarramendi, claiming that both misappropriated over $53 million in investor money and used the funds for their own gain. The SEC claims that Illarramendi defrauded investors in his managed hedge funds… Read More »
SEC Sues Florida Hedge Fund and Its Managers Involved in Petters Ponzi Scheme
On October 14, 2010, the Securities and Exchange Commission brought a civil action against two Florida-based hedge fund managers and their funds for defrauding investors out of approximately $1 billion. The SEC charged Palm Beach Capital Management and fund managers Bruce Prevost and David Harrold with committing federal securities fraud by misleading investors about… Read More »
FINRA Bars Former Deutsche Bank Advisor from Securities Industry for Stock-Price Manipulation
FINRA has barred a former advisor from Deutsche Bank from the securities industry for manipulating the stock price of Monogram Biosciences (MGRM). The purpose of the scam was to enrich himself and a hedge fund client. Edward S. Brokaw engaged in trading designed to decrease the price of MGRM stock and increase the value… Read More »
FINRA Expels MICG for Fraud in Managing Hedge Fund
FINRA says that a brokerage firm it recently expelled committed securities fraud. MICG Investment Management LLC of Newport News, Virginia, committed fraud in the management of a proprietary hedge fund. FINRA is also suing the firm for misusing investors’ funds and causing false account statements to be issued to investors. FINRA had shut down… Read More »