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.