SEC Says 2 Fund Managers, Firms Gave Petters $1B

Law360, New York (October 14, 2010, 6:56 PM EDT) -- The U.S. Securities and Exchange Commission has hit two Florida-based hedge fund managers and their firms with a suit accusing them of funneling more than $1 billion of their clients' money to convicted Ponzi schemer Thomas J. Petters and scoring more than $58 million in fees for themselves in the process.

The SEC targeted Bruce F. Prevost and David W. Harrold in the suit filed in the U.S. District Court for the District of Minnesota on Thursday, alleging that they and their firms, Palm Beach Capital...
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