{"id":79877,"date":"2021-11-08T00:18:36","date_gmt":"2021-11-08T05:18:36","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=79877"},"modified":"2021-11-07T23:38:39","modified_gmt":"2021-11-08T04:38:39","slug":"hedge-fund-adviser-found-liable-for-securities-fraud","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/11\/2021\/hedge-fund-adviser-found-liable-for-securities-fraud.html","title":{"rendered":"Hedge Fund Adviser Found Liable for Securities Fraud"},"content":{"rendered":"\n<p>(HedgeCo.Net) Jurors in Boston federal court have returned a verdict in the Securities Exchange Commission\u2019s favor against a hedge fund adviser and his investment advisory firm.\u00a0<\/p>\n\n\n\n<p><strong>Gregory Lemelson<\/strong> and Massachusetts-based <strong>Lemelson Capital Management<\/strong> LLC <a href=\"https:\/\/www.sec.gov\/news\/press-release\/2018-190\">were charged with fraud in September 2018<\/a> for reaping more than <strong>$1.3 million<\/strong> in illegal profits by making false statements to drive down the price of San Diego-based Ligand Pharmaceuticals Inc.\u00a0 The SEC\u2019s evidence at trial showed that after establishing a short position in Ligand through his hedge fund, Lemelson made a series of false statements to shake investor confidence in Ligand and lower its stock price, increasing the value of his fund\u2019s position. \u00a0The false statements included assertions that Ligand\u2019s investor relations firm had agreed that Ligand\u2019s most profitable drug was on the brink of obsolescence and that Ligand had entered into a sham transaction with an unaudited shell company in order to pad its balance sheet.\u00a0 The evidence also showed that Lemelson had boasted about bringing down Ligand\u2019s stock price through his \u201cmulti-month battle\u201d against the company.<\/p>\n\n\n\n<p>The jury found Lemelson and Lemelson Capital Management liable for fraudulent misrepresentations.&nbsp; The court will determine remedies at a later date.<\/p>\n\n\n\n<p>\u201cInvestment professionals play a crucial role in our markets and when they break the law they undermine investors\u2019 trust,\u201d said Gurbir S. Grewal, Director of the SEC\u2019s Division of Enforcement.&nbsp; \u201cWe\u2019ll continue to use all of the tools in our toolkit to hold wrongdoers accountable, including litigating whenever necessary.&nbsp; This verdict underscores that commitment as well as our staff\u2019s ability, tenacity, and experience to win those trials.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) Jurors in Boston federal court have returned a verdict in the Securities Exchange Commission\u2019s favor against a hedge fund adviser and his investment advisory firm.\u00a0 Gregory Lemelson and Massachusetts-based Lemelson Capital Management LLC were charged with fraud in September [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-79877","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/79877","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\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=79877"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/79877\/revisions"}],"predecessor-version":[{"id":79878,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/79877\/revisions\/79878"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=79877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=79877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=79877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}