WEST PALM BEACH, FL (HEDGECO.NET) – The Securities and Exchange Commission [SEC] said it is filing an emergency action against the San Diego, California based hedge fund manager, Global MoneyManagement LP, and LF Global Investments along with its operator Marvin Friedman for allegedly overstating its assets to the fund�s investors.
The Commission’s complaint alleges that GMM, LF Global, and �Friedman violated the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 there under, and, as to LF Global, Sections 206(1) and 206(2) of the Investment Advisers Act of 1940�.
The charge also stipulated that �Friedman aided and abetted those violations of the Advisers Act, seeking, in addition to the emergency relief described above, from each defendant, preliminary and permanent injunctions, disgorgement with prejudgment interest, and a civil penalty�.
Additionally the SEC said Fund manager Friedman failed to inform investors in the fund that he has a disciplinary action against him and that he was barred from associating with a member of the National Association of Securities Dealer. A federal judge has issued a restraining order, which froze the assets of the two named hedge funds.
Friedman has told investors at various times over the last several months that the hedge fund held assets ranging from $60 million to over $100 million. GMM’s brokerage records, however, show that, since at least December 2002, the securities it holds have been worth no more than $11 million.
A hearing on whether a preliminary injunction should be issued against the defendants has been scheduled for March 25, 2004 according to the SEC filing papers.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and coming soon www.hedgefundemployment.com.
