Court Freezes Boston-Based Hedge Fund’s Assets

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.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of