WEST PALM BEACH, FL (www.hedgeco.net) – The Securities and Exchange Commission has issued an emergency action against a Palm Beach Florida based hedge fund manager. According to the SEC pressrelease, the defendants conducted a fraudulent scheme that has resulted in the loss of most, if not all, of the $81 million raised from investors.
The Complaint filed by the SEC named many defendants, for the various roles they played in the alleged fraud. In the filings, the SEC named K.L. Group, LLC, KL Florida, LLC and KL Triangulum Management, LLC, for their violations while acting as investment advisers to the hedge fund defendants. The complaint also named the hedge funds, KL Group Fund, LLC, KL Financial Group Florida LLC, KL Financial Group DB Fund, LLC, KL Financial Group DC Fund, LLC, KL Financial Group IR Fund, LLC, and KL Triangulum Group Fund, LLC, as defendants.
The SEC complaint also named several principals as well as investment advisers and hedge funds including Won Sok Lee (of Singer Island, Fla.), John Kim (of Jupiter, Florida), and Yung Bae Kim (of Irvine, Calif.) as defendants in the case. Others named by the Commissions complaint were Shoreland Trading LLC, of Irvine, California, a broker-dealer controlled by defendant Lee.
Judge Kenneth L. Ryskamp of the United States District Court for the Southern District of Florida in West Palm Beach has issued temporary restraining orders, and granted that the assets of the named defendants be frozen. The court also appointed a receiver for all the entities named in the SEC complaint. According to the court, starting in 1999, and continuing through February 2005, the named hedge funds raised over $81 million in investment assets from about 250 investors through falsified statements. Such statements showed that the defendants earned consistent high returns, while at the same time the hedge funds in question were experiencing significant losses.
David Nelson, Director of the Commission�?Ts Southeast Regional Office in Miami commented, this fraud was fueled by brazen lies about the hedge funds investment track record. Our priorities now are to hold these defendants accountable and to return as much as we can to defrauded investors.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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