Thursday, 27 October 2016
Last updated 7 hours ago
May 8 2007 | 2:03pm ET
The U.S. District Court in Boston last week issued a preliminary injunction against a Boston-based hedge fund adviser and its principals that continues a freeze of the firm’s assets, according to the Securities and Exchange Commission.
The SEC last month filed an emergency action in the federal district court in Massachusetts against Lydia Capital and its two principals, Glenn Manterfield and Evan Andersen, alleging that between June 2006 and April 2007 the defendants duped more than 60 investors.
The principals allegedly told investors—who collectively placed approximately $34 million in the firm’s alternative investment fund— that they intended to use the fund's assets to acquire a portfolio of life insurance polices in the life settlement market.
While the fund did acquire interests in some insurance polices, the principals overstated, and in some instances fabricated the fund's performance; invented fictitious business partners, offices, and investors in an attempt to legitimatize the firm. They also allegedly withheld the truth as to why vendors and banks stopped doing business with them; and lied about Manterfield's significant criminal history among other devious acts.