SEC Investigations and Probes of Hedge Funds

SEC Investigations

SEC Investigations and Probes

Unfortunately it appears as if the SEC has found enough evidence and felt enough political pressure to launch over 150 investigations and 50 additional probes into areas related to hedge funds. If it helps clean out the bad lemons that is great, but many times any type of non-traditional fund is now labeled a hedge fund and the black marks quickly add up in the mainstream media and in the eyes of the public in general. Here is an excerpt on an article on this topic:

U.S. securities regulators have about 150 active hedge fund investigations and more than 50 probes involving credit default swaps and other derivatives, Securities and Exchange Commission Chairman Mary Schapiro said on Monday.

The SEC also has about two dozen active municipal securities investigations, possibly involving arbitrage-driven fraud, public corruption and price transparency, Schapiro told a conference of business journalists in Denver.

Schapiro, who has made enforcement one of her top priorities since taking the helm late in January, said the hedge fund investigations include possible Ponzi schemes, where early investors are paid with money from newer investors, misappropriations and performance smoothing. source

For more information on the SEC, regulations and compliance please see the Hedge Fund Regulation Corner | Compliance & Law Notes.

Related to SEC Investigations and Probes of Hedge Funds

• Benchmark Asset Management Marc Duchesne
• CRW Managment Ray White Ponzi Scheme Fraud Case
• Locke Capital Management Leila Jenkins Case
• Billion Coupons Inc. Marvin Cooper Fraud Case
• Westgate Capital Management LLC James Nicholson Fraud
• Mark Bloom North Hills Management LLC Fraud Case
• Steven Walsh & Paul Greenwood Futures Fraud Case
• Daren Palmer Ponzi Scheme Fraud Case Notes
• Sir Allen Stanford Fraud Case SEC Charges
• Bernard Madoff Case & Hedge Fund Fraud

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