Accused Hedge Fund Manager's Lawyer Calls Galvin 'Unprofessional'

May 26 2008 | 1:04pm ET

A lawyer for the hedge fund manager accused by Massachusetts authorities of improperly marketing his fund is lashing out at his client’s tormentor.

Raymond Mansolillo, who represents Michael Regan, called Massachusetts Secretary of the Commonwealth “unprofessional” and accused him of filing “premature” charges when he found out Regan had approached federal prosecutors in New York.

“It was completely unprofessional” Mansolillo said of Galvin’s highly-publicized charges, which were designed to “ignite the emotions of investors.”

Galvin’s securities division alleges that Regan’s Natick, Mass.-based River Stream Fund failed to adequately determine whether his roughly 60 clients were wealthy enough to invest in hedge funds. It also said that Regan was neither a registered investment adviser nor adviser representative, and that River Stream was also not registered. But the regulator also found more than a hint of other improprieties that may indicate that investors won’t be seeing their money again.

Mansolillo said his client is under investigation both by federal prosecutors and regulators in New York, but that Regan was the one who approached authorities and insisted on notifying his clients, the Boston Herald reports.

For his part, Galvin dismissed Mansolillo’s comments are complaints “from a client’s attorney.”

RELATED STORIES

Mass. Charges Hedge Fund Manager For Solicitations 


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR