Ga. Commodities Hedge Fund, Founder Hit With Fines

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.

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