Saturday, 25 June 2016
Last updated 1 day ago
Jan 28 2008 | 11:33am ET
A federal judge has frozen the assets of a group of hedge funds and related entities after the Securities and Exchange Commission filed a fraud complaint against two people and six entities they allegedly control.
According to the SEC, James Jeffery and Thomas Repke, along with Coadum Advisors, Mansell Capital Partners and a slew of funds and related companies, were used to defraud investors in a series of four securities offerings, two of which are ongoing. The complaint alleges that investors were promised returns of 3% to 6% per month in principal-protected investments, in which the principal would remain in an escrow account.
The SEC says the group actually transferred the funds to Exodus Equities in Malta, investing most of the US$30 million raised in Exodus Platinum Genesis Fund, a Bermuda-based hedge fund that is not yet actually operating, and in supposed “pre-REIT convertible bonds.”
In addition, Coadum and Mansell allegedly borrowed some US$3 million from or secured against the investors’ funds, and disbursed another US$5 million to related parties.
Judge Orinda Evans of the Northern District of Georgia last week imposed a temporary restraining order on Jeffery, who lives in Ontario, Canada and Repke, who lives in Holladay, Utah, as well as Coadum and Marshall. In addition to freezing the funds, demanding an accounting of them and forbidding the four from further securities law violations, Evans also appointed a receiver.