Nothing's Easy, SEC Says In Hedge Fund Lawsuit

Nov 9 2010 | 10:34am ET

Beware of claims of easy money: A hedge fund with a  facile name has been accused of defrauding investors of more than $2 million.

The Securities and Exchange Commission has sued Los Angeles-based Easy Equity Management and its principals, alleging that they lied to investors while stealing more than half of the money they raised. Alero Odell Mack and Steven Enrico Lopez both overstated Easy Equity's returns and lied about Mack's access to the New York Stock Exchange trading floor to raise some $4 million from 25 investors, the regulator said.

Easy Equity's marketing material claimed a 70% return that the SEC says never happened. Another brochure boasted of "staggering returns time and time again."

Indeed, the SEC says, the returns were good: for Mack and Lopez and the clients they paid referral fees. Only $1.3 million of the money raised was invested, according to the lawsuit, while more than $1 million was split between the two for personal expenses.

The lawsuit seeks restitution of ill-gotten gains and penalties.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note