{"id":24462,"date":"2011-09-02T06:28:43","date_gmt":"2011-09-02T10:28:43","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=24462"},"modified":"2011-09-02T06:37:17","modified_gmt":"2011-09-02T10:37:17","slug":"quant-hedge-fund-start-up-has-assets-frozen","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2011\/quant-hedge-fund-start-up-has-assets-frozen.html","title":{"rendered":"Quant Hedge Fund Start-Up Has Assets Frozen"},"content":{"rendered":"

\"\"<\/a>New York (HedgeCo.net) – The SEC has accused Belal K. Faruki and Neural Markets LLC., and relief defendants Evolution Quantitative 1X Fund and Evolution Quantitative 1X LLC.,\u00a0of misrepresenting their startup hedge fund.\u00a0A federal judge has frozen all the manager’s hedge fund assets, according to Courthouse news srevices.<\/p>\n

The Wall Street Journal reported that Faruki has denied the allegations. He said the entire complaint is a smear campaign by a former partner.<\/p>\n

\u201cIt\u2019s working. He definitely ruined our lives,\u201d he said. \u201cAnd the government is his free lawyer right now.\u201d<\/p>\n

The Chicago Sun Times reports that\u00a0Faruki said\u00a0he is a mathematician who designed his own\u00a0investment strategies software. As principal owner of Neural Markets, he and five friends decided to use the software to invest in the market. It was a private company that did not want outside investors, Faruki said.<\/p>\n

\u201cWe don\u2019t take public money. We don\u2019t advertise ourselves to the public.\u201d Faruki said. \u201cThe SEC is allowing taxpayers\u2019 dollars to be blown on a frivolous lawsuit.\u201d<\/p>\n

The SEC\u00a0alleges\u00a0that Faruki and Neural Markets presented themselves a a start-up quantitative hedge fund, defrauding at least one investor out of \u00a0$1 million. The hedge fund is alleged to have falsely represented to the Investor that trading was generating profits for the Evolution IX Fund, when in fact losses were being incurred, the\u00a0federal complaint stated.<\/p>\n

Faruki said the reason no other victims are mentioned in the SEC complaint is that there aren\u2019t any. According to Faruki, it is simply one disgruntled partner who could not get a criminal complaint filed so he turned to the SEC, the Chicago newspaper reported.<\/p>\n

Alex Akesson
\nEditor for HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a> is a premier hedge fund database<\/a> and community for qualified and accredited investors only. Membership in HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.net) – The SEC has accused Belal K. Faruki and Neural Markets LLC., and relief defendants Evolution Quantitative 1X Fund and Evolution Quantitative 1X LLC.,\u00a0of misrepresenting their startup hedge fund.\u00a0A federal judge has frozen all the manager’s hedge […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,3],"tags":[],"class_list":["post-24462","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-regulation","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/24462","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=24462"}],"version-history":[{"count":5,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/24462\/revisions"}],"predecessor-version":[{"id":24465,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/24462\/revisions\/24465"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=24462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=24462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=24462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}