SEC Sues Former Chicago Hedge Fund Managers

Oct 4 2012 | 11:28am ET

The Securities and Exchange Commission has sued a husband-and-wife team, accusing them of ripping off investors in their hedge fund.

Norman Goldstein and the appropriately-named Laurie Gatherum took at least $147,000 more than they were entitled to through excessive fees and capital withdrawals. While the Chicago couple's GEI Financial Services returned $3.6 million to investors after losing their state license last year due to a number of violations, they still owe the rest, the SEC said.

"For years, the defendants have demonstrated a complete disregard toward the securities laws, their clients and the state of Illinois," the regulator said in its complaint. "They long ago abandoned their fiduciary responsibilities towards their clients."

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Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…