Denver Post- Colorado Securities Commissioner Fred Joseph has filed a fraud lawsuit in Denver District Court against a Colorado Springs man who ran two hedge funds worth $3 million.
The complaint alleges Brian J. Peterson abandoned the operation, leaving 30 to 40 investors in the dark. The hedge funds were marketed as fund-of-funds, which pool investor money and puts the money in investment funds run by other financial managers and advisers.
“Our investigation of this matter is ongoing,” Joseph said in a statement Friday.
Peterson couldn’t be reached for comment Friday. A man who answered the phone at his most recent residence in Colorado Springs said Peterson no longer lived there.
Joseph said Peterson launched the hedge funds in February 2004. A district-court judge has appointed a receiver, Andrew C. Snyder, to oversee the hedge funds, Integrity Fund and Integrity Fund II.
