{"id":19540,"date":"2010-12-22T07:41:05","date_gmt":"2010-12-22T11:41:05","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=19540"},"modified":"2010-12-22T07:51:18","modified_gmt":"2010-12-22T11:51:18","slug":"sec-charges-sf-hedge-fund-managers-with-fraud","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/12\/2010\/sec-charges-sf-hedge-fund-managers-with-fraud.html","title":{"rendered":"SEC Charges SF Pegasus Hedge Fund Advisers With Fraud"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/12\/sec_us-securities-and-exchange-commission.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-19541\" title=\"SEC\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/12\/sec_us-securities-and-exchange-commission-300x300.jpg\" alt=\"\" width=\"210\" height=\"210\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2010\/12\/sec_us-securities-and-exchange-commission-300x300.jpg 300w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2010\/12\/sec_us-securities-and-exchange-commission-150x150.jpg 150w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2010\/12\/sec_us-securities-and-exchange-commission.jpg 320w\" sizes=\"auto, (max-width: 210px) 100vw, 210px\" \/><\/a>New York (HedgeCo.net) -The SEC has charged two San Francisco-based hedge fund adviser firms along with their former CEO, former general counsel, and former portfolio manager with defrauding investors in a $100 million hedge fund that invested in subprime automobile loans.<\/p>\n<p>The SEC alleges that former CEO Benjamin P. Chui and former portfolio manager Triffany Mok, managers of the American Pegasus Auto Loan Fund, as well as former general counsel Charles E. Hall, Jr., engaged in improper self-dealing, misused client assets, and failed to disclose conflicts of interest.<\/p>\n<p>\u201cFund advisers have a duty to disclose conflicts of interest and act in the best interests of clients whose assets they are entrusted to manage,\u201d said Marc Fagel, Director of the SEC\u2019s San Francisco Regional Office. \u201cInstead, Chui, Hall, and Mok created a tangled financial web, using investor funds for their personal benefit and then attempting to paper over the misconduct by inflating the value of fund assets.\u201d<\/p>\n<p>Without admitting or denying the charges, the defendants settled the charges by agreeing pay more than $1 million in penalties and repayments to the fund. Chui, who lives in San Carlos, Calif., agreed to pay a $175,000 penalty and \u00a0Hall, who lives in Carlisle, Penn., agreed to pay a $100,000 penalty and be barred from associating with an investment adviser for three years and from appearing or practicing before the Commission as an attorney for three years. Mok, who lives in Fremont, Calif., agreed to pay a $75,000 penalty and be suspended from associating with an investment adviser for one year. The two adviser firms must disgorge $850,000 in management fees deemed improper by the SEC.<\/p>\n<p>Editing by Alex Akesson<br \/>\nFor <a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.Net<\/a> is a premier <a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\">hedge fund database<\/a> and community for qualified and accredited investors only. Membership in <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.net) -The SEC has charged two San Francisco-based hedge fund adviser firms along with their former CEO, former general counsel, and former portfolio manager with defrauding investors in a $100 million hedge fund that invested in subprime automobile [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-19540","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/19540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=19540"}],"version-history":[{"count":6,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/19540\/revisions"}],"predecessor-version":[{"id":19543,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/19540\/revisions\/19543"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=19540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=19540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=19540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}