A former hedge fund manager has settled allegations that he lied about his firm's assets under management to win an investment from the U.S.'s largest public pension fund.
Mesh Tandon, who led the now-defunct Simran Capital Management, agreed to pay $100,000 and to be barred from the securities industry, the Securities and Exchange Commission said. He did not admit or deny wrongdoing.
According to the SEC, Tandon told the California Public Employees' Retirement System that Simran met the pension's minimum asset level of $200 million while seeking a high-yield fixed-income mandate in 2008. The firm actually managed only $80 million at the time.
The alleged ploy worked: CalPERS hired Simran, and Tandon used his firm's links with the pension to lure other clients. But he did not stop inflating his firm's assets, the SEC said, lying to prospective clients more than a dozen times, and to the SEC at least four times. The regulator said Tandon also sought to mislead it during a routine examination.
Simran closed its doors last year; CalPERS said it had ended its relationship with the hedge fund several years ago.