{"id":44086,"date":"2014-09-24T08:21:35","date_gmt":"2014-09-24T12:21:35","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=44086"},"modified":"2014-09-24T09:27:57","modified_gmt":"2014-09-24T13:27:57","slug":"former-money-manager-charged-with-stealing-hedge-fund-fees","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2014\/former-money-manager-charged-with-stealing-hedge-fund-fees.html","title":{"rendered":"Former Money Manager Charged With Stealing Hedge Fund Fees"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2012\/07\/financial-fraud-enforcement-task-force1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-30399 size-full\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2012\/07\/financial-fraud-enforcement-task-force1.jpg\" alt=\"financial-fraud-enforcement-task-force\" width=\"163\" height=\"173\" \/><\/a>New York (HedgeCo.Net) &#8211; Former hedge fund manager Sean C. Cooper has been accused of fraudulently taking excess management fees from the accounts of investors, the SEC reports.<\/p>\n<p>An investigation found that Cooper improperly withdrew more than $320,000 from a hedge fund he managed for San Francisco-based investment advisory firm WestEnd Capital Management LLC. While WestEnd disclosed to clients the withdrawal of annual management fees of 1.5 percent of each investor\u2019s capital account balance, Cooper actually withdrew amounts that far exceeded that percentage.<\/p>\n<p>The SEC alleges that Cooper was using hedge fund WestEnd Capital Management LLC., as his own private bank.<\/p>\n<p>WestEnd, which expelled Cooper and reimbursed the hedge fund once it became aware of his scheme, is being charged separately by the SEC for failing to effectively supervise him. The firm agreed to pay a $150,000 penalty to settle the SEC\u2019s charges.<\/p>\n<p>\u201cCooper betrayed the hedge fund\u2019s investors by lining his own pockets with fund assets that he had not earned,\u201d said Marshall S. Sprung, Co-Chief of the SEC Enforcement Division\u2019s Asset Management Unit. \u201cHis fraud went undetected because WestEnd had no internal controls to limit Cooper\u2019s ability to withdraw excessive amounts from the fund.\u201d<\/p>\n<p>In addition to the financial penalty, WestEnd agreed to cease and desist from committing or causing future violations of these provisions without admitting or denying the findings. The settlement also requires the firm to retain a compliance consultant.<\/p>\n<p>Alex Akesson<br \/>\nEditor at\u00a0<a style=\"color: #743399;\" title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a><br \/>\n<a style=\"color: #743399;\" href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a style=\"color: #743399;\" title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a style=\"color: #743399;\" title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a style=\"color: #743399;\" title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a style=\"color: #743399;\" title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; Former hedge fund manager Sean C. Cooper has been accused of fraudulently taking excess management fees from the accounts of investors, the SEC reports. An investigation found that Cooper improperly withdrew more than $320,000 from a [&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-44086","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\/44086","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=44086"}],"version-history":[{"count":3,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44086\/revisions"}],"predecessor-version":[{"id":44094,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44086\/revisions\/44094"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=44086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=44086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=44086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}