Tuesday, 26 July 2016
Last updated 1 min ago
Mar 26 2010 | 4:00am ET
A hedge fund accused of defrauding investors and its manager have been ordered to pay more than $4 million in restitution and penalties.
A federal court in Atlanta has ordered Lake Dow Capital and Ty Edwards to pay nearly $2.3 million in restitution and $1.9 million in civil monetary penalties at the request of the U.S. Commodity Futures Trading Commission. The regulator accused Edwards and his firm in 2005 of fraudulently soliciting more than $26 million for his commodity hedge fund, Aurora Investment Fund, and misappropriating much of the money.
The restitution and fines come on top of more than $19 million seized from Edwards and since returned to his alleged victims.
Three years ago, the CFTC won permanent bans from participating in commodities trading against Lake Dow and Edwards.