SEC charges hedge fund with exaggerating returns

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SEC charges hedge fund with exaggerating returns
from MarketWatch.com - MarketPulse
WASHINGTON (MarketWatch) - The Securities and Exchange Commission on Wednesday charged a hedge fund and two of its executives with allegedly scheming to overvalue assets under management and exaggerating the firm's reported returns to hid losses. The SEC alleges that by fraudulently making the fund, Yorkville Advisors LLC, more attractive to potential investors, the two executives enticed more than $280 million in investments from pension funds and other investors and enabled it to charge at least $10 million in excess fees. The SEC filed its complaint in U.S. District Court for the Southern District of New York. The hedge fund firm was once worth $1 billion. In response, Yorkville said it was "deeply" disappointed by the SEC's charges, adding that it intends to "vigorously" dispute the agency's allegations.