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.

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