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

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note