San Francisco Hedge Funds Fraud
Two San Francisco Hedge Funds Charged with Fraud
The Securities and Exchange Commission said it has settled fraud charges with two San Francisco investment-adviser firms and three people, imposing sanctions and requiring more than $1 million in penalties and repayments.
The firms--American Pegasus LDG and American Pegasus Investment Management--as well as Chief Executive Benjamin Chui, former portfolio manager Triffany Mok and former general counsel Charles E. Hall Jr., engaged in improper self-dealing, misused client assets and failed to disclose conflicts of interest, the SEC said.
With the settlement, the respondents didn't admit or deny the SEC's findings.
"Chui, Hall, and Mok created a tangled financial web, using investor funds for their personal benefit and then attempting to paper over the misconduct by inflating the value of fund assets," said Marc Fagel, director of the SEC's San Francisco office. Source