Dow Jones – The Securities and Exchange Commission said the assets of a Chicago-area money manager and his hedge fund were frozen, a move that stems from allegations they lied to prospective investors in their start-up quantitative hedge fund.
The SEC alleges that Belal K. Faruki, of Aurora, Ill., and his advisory firm Neural Markets LLC solicited highly sophisticated individuals to invest in the “Evolution Quantitative 1X Fund,” a hedge fund they managed that supposedly used a proprietary algorithm to carry out an arbitrage strategy involving trading in liquid exchange-traded funds.
