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: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note