A federal judge in Miami has found that former hedge fund manager Michael Lauer defrauded investors out of more than $500 million between 1999 and 2002.
U.S. District Court Judge Kenneth A. Marra, in a 67-page order issued last week, found that Lauer manipulated the prices of seven securities that were a large part of the funds’ portfolios, but failed to provide any basis for the exorbitant valuations and lied to investors about the hedge funds actual holdings.
The judge said in his order that Lauer’s actions, as head of Lancer Management Group and Lancer Management Group II, were "egregious, pervasive, premeditated and resulted in the loss of hundreds of millions of dollars in investors’ funds."
