NEW YORK (AP) – A former executive of Lipper Holdings was indicted Wednesday on charges he caused the values of two hedge funds to be overstated by hundreds of millions of dollars.
Investors were told their money in Lipper was growing up to 15 percent a year, when they were actually losing cash, the government said.
Edward Strafaci, 45, of Colts Neck, N.J., was charged with four federal counts, including securities fraud and investment advisory fraud.
The indictment said Strafaci fraudulently overvalued the assets of some Lipper funds from 1996 to 2002.
The Securities and Exchange Commission filed a related civil suit charging Strafaci with securities fraud and investment advisory fraud.
An attorney for Strafaci could not immediately be reached. Strafaci was expected to appear in federal court later in the day.
