Azure Bay Closes Its Doors After SEC Charges Founder

Dec 6 2007 | 8:19am ET

A Michigan hedge fund manager charged last week with fraud has closed its doors. Azure Bay Management founder Daniel Jones, who the Securities and Exchange Commission has accused of hiding big losses from investors in his Addington Fund, says he is cooperating with the agency.

“This is something we are taking very seriously,” Jones told the Battle Creek Enquirer. “And we are dealing with the SEC in a very open, forthright manner.”

A federal judge froze the assets of Battle Creek-based Azure Bay, Jones and Addington, after the SEC accused Jones of telling investors that Addington boasted $2.1 million in assets, while it actually managed just $200,000. He also sent them falsified performance statements. The regulator alleges that Jones charged $135,000 in fees anyway.

Jones denies that the firm charged anywhere near $135,000 in fees.

“There was no wrongdoing to the extent that they are alleging,” he told the newspaper. “This is more of an accounting issue.”

In addition to shuttering his firm, Jones resigned from the Battle Creek Planning Commission on Tuesday.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.