WEST PALM BEACH, FL (www.hedgeco.net) – The U.S. Securities and Exchange Commission has filed charges against a Colorado hedge fund manager, Castle Rock Trading Company. According to the report,Castle Rock Trading Hedge Fund Company was charged with illegal advertising on the Internet.
SEC lawyers have sought for a temporary restraining order and a preliminary injunction against the Colorado based hedge fund manager, along with its manager Joseph Ferona, from the U.S. District Court in Colorado. SEC laws restrain U.S. based hedge fund managers from advertising their funds through the media. Depending on the nature of the charges against Castle Rock Trading the SEC may among other penalties shut the operations of the firm if the firm is found guilty of such violation.
Lawyers familiar with the case said, Castle Rock Trading manager, Ferona tried to market shares of its Global Prosperity Fund through the Internet. The asset manager also falsely claimed that the fund has over $25 million in assets. Additionally, Global Fund Managers claimed that the fund earned forty percent in annual returns between the years 2000 and 2003. The fund manager also promised it would deliver a fifty percent to its investors in 2004. Lawyers said Ferona claimed he achieved such returns through options trading and that he kept surplus money outside the guaranteed returns. Regulator�s attention was drawn on Ferona when he tried to register a new hedge fund with the SEC.
HedgeCo.Net is the most popular hedge fund database and community in the world. Membership on HedgeCo.Net is free and easy. We also offer free listings for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com.
