Petters-Linked Hedge Fund Manager Faces SEC Trial

Nov 1 2013 | 11:57am ET

A Thomas Petters-linked hedge fund fraud case will go to trial, a federal judge has ruled.

Marlon Quan and his Acorn Capital Group and Stewardship Investment Advisors are accused of helping Petters cover up his $3.5 billion Ponzi scheme, engaging in so-called "round-trip" transactions in which Petters wired money to the firms which was returned immediately. Quan allegedly raised more than $459 million for the scam, according to a 2011 Securities and Exchange Commission lawsuit.

The suit will now go before a jury after U.S. District Judge Ann Montgomery rejected both sides' motion for summary judgment.

Montgomery found that the question of whether Quan's "lockbox account" and due-diligence representations were actually misleading is for a jury to determine.

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    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…