Reuters – U.S. securities regulators sued a London-based hedge fund and its chief executive on Thursday, alleging they schemed to defraud mutual funds and shareholders in the United States.
The U.S. Securities and Exchange Commission said Pentagon Capital Management Plc, which manages $2 billion in assets, and chief executive Lewis Chester orchestrated a scheme to defraud mutual funds through late trading and deceptive market timing, according to a complaint filed in U.S. District Court in Manhattan.
From about June 1999 through September 2003, "PCM actively traded U.S. mutual funds through Pentagon Fund’s accounts at numerous broker-dealers in the United States," the SEC said.
