{"id":79908,"date":"2021-11-10T02:17:14","date_gmt":"2021-11-10T07:17:14","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=79908"},"modified":"2021-11-10T02:19:05","modified_gmt":"2021-11-10T07:19:05","slug":"sec-wins-jury-trial-hedge-fund-adviser-liable-for-securities-fraud","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/11\/2021\/sec-wins-jury-trial-hedge-fund-adviser-liable-for-securities-fraud.html","title":{"rendered":"SEC Wins Jury Trial: Hedge Fund Adviser Liable for Securities Fraud"},"content":{"rendered":"\n<p>(HedgeCo.Net) Jurors in Boston federal court returned have returned a verdict in the Securities Exchange Commission&#8217;s favor against a hedge fund adviser and his investment advisory firm.<\/p>\n\n\n\n<p>Gregory Lemelson and Massachusetts-based Lemelson Capital Management LLC <a href=\"https:\/\/www.sec.gov\/litigation\/litreleases\/2018\/lr24267.htm\">were charged with fraud in September 2018<\/a> for reaping more than $1.3 million in illegal profits by making false statements to drive down the price of San Diego-based Ligand Pharmaceuticals Inc. The SEC&#8217;s 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&#8217;s position. The false statements include assertions that Ligand&#8217;s investor relations firm had agreed that Ligand&#8217;s 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. The evidence also showed that Lemelson had boasted about bringing down Ligand&#8217;s stock price through his &#8220;multi-month battle&#8221; against the company.<\/p>\n\n\n\n<p>The jury found Lemelson and Lemelson Capital Management liable for fraudulent misrepresentations, finding that they violated the anti-fraud provisions of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder. The court will determine remedies at a later date.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) Jurors in Boston federal court returned have returned a verdict in the Securities Exchange Commission&#8217;s favor against a hedge fund adviser and his investment advisory firm. Gregory Lemelson and Massachusetts-based Lemelson Capital Management LLC were charged with fraud in [&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-79908","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\/79908","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=79908"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/79908\/revisions"}],"predecessor-version":[{"id":79909,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/79908\/revisions\/79909"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=79908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=79908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=79908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}