Saturday, 29 August 2015
Last updated 19 hours ago
Nov 26 2013 | 11:14am ET
The Securities and Exchange Commission has lost a bid to win back part of its claims against a pair of alleged hedge-fund fraudsters.
A federal judge in Atlanta earlier this month reaffirmed a 2011 decision narrowing the claims against Paul Mannion and Andrew Reckles, who ran the Palisades Master Fund and two feeder funds. The SEC has accused the two of misappropriating the funds' capital and inflating asset values.
Two years ago, the court held that in one of the SEC's claims, individual investors weren't clients, Palisades itself was the client, and therefore Mannion and Reckles were on the hook only for the increased management fees they received by allegedly overvaluing the assets. Despite the SEC's request for reconsideration, the court on Nov. 12 held that the law requires "material" misrepresentation to a client, and in the case of feeder funds, the client is the Master Fund.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…