SEC Sues N.J. Fund For Misrepresentation

Dec 22 2005 | 8:24pm ET

The Securities and Exchange Commission is suing New Jersey-based hedge fund HMC International and two of its principals for misrepresenting the fund's performance to investors.

The SEC began an investigation into the now-defunct firm in the fall after the pair could not return money to investors who wanted out.

Regulators have frozen HMC's assets and are accusing Robert Massimi and Bret Grebow of misappropriating $5.3 million of the firm's $12.9 million in assets under management.

The two, who in the past have made headlines for their lavish lifestyles, allegedly used investors' money to pay for such things as expensive cars and private planes.

The SEC is also charging Jaime Elliott, Massimi's wife, in the case because some of the money was diverted to her following the collapse of the fund.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note