Thursday, 27 November 2014
Last updated 1 day ago
Nov 11 2011 | 12:04pm ET
A California hedge fund manager is accused of ripping off investors in two separate scams.
The Securities and Exchange Commission yesterday sued Del Mar-based Western Pacific Capital Management and its president, Kevin O'Rourke. According to the complaint, the two lied to investors about the liquidity of Western Pacific's hedge fund, The Lighthouse Fund, as well as pushing investors into a stock offering on which it received undisclosed commissions.
Between 2005 and 2008, O'Rourke and Western Pacific allegedly told investors in Lighthouse that only a quarter of its assets were illiquid. In fact, according to the SEC, the figure was closer to 90%. What's more, the $75 million firm improperly favored one investor's redemption request over another.
O'Rourke and Western Pacific are also accused of flogging a stock sale by Ameranth Inc. to clients without telling them that it was in line for a 10% "success fee." Western Pacific earned some $450,495 in commissions on investments made by its clients.
Nov 4 2014 | 9:45am ET
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