Court Slams 'Easy' Hedge Fund In Fraud Case

May 25 2011 | 1:54am ET

A Los Angeles hedge fund has been ordered to pay more than $7.25 million in disgorgement and civil penalties in a fraud case.

A federal court in California has entered a default judgment against Easy Equity Management, the Securities and Exchange Commission said. The regulator last year accused the firm of defrauding investors of more than $2 million, saying its principals lied to investors while stealing more than half of the $4 million their raised.

The SEC's case against those principals, Alero Mack and Steven Lopez, is continuing.

According to the SEC, the two men lied both about Easy Equity's returns, claiming a 70% return that the SEC says never happened, and about Mack's access to the New York Stock Exchange trading floor.

The judgment against Easy Equity also covered four affiliates of the hedge fund.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...