Hedge Fund Settles SEC Fraud Charges

Law360, New York (February 27, 2007, 12:00 AM EST) -- Illinois hedge fund adviser Crestview Capital Partners LLC and one of its managers will pay more than $500,000 to settle charges brought by the U.S. Securities and Exchange Commission.

The SEC accused Crestview and managing member Stewart R. Flink of lying in offering documents for biotechnology companies Introgen Therapeutics Inc. and Targeted Genetics Corp., which resulted in nearly $200,000 in illegal profits. Crestview falsely said it did not short sell the companies’ stock ten days prior to the agreement, according to the SEC.

The settlement disclosed...
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