Hedge Fund Bosses Can't Shake SEC Fraud Suit

Law360, New York (June 2, 2011, 7:29 PM EDT) -- A Georgia federal judge ruled Wednesday that a fraud case against two hedge fund advisers can go forward, but the U.S. Securities and Exchange Commission must narrow its case against them.

Paul Mannion Jr., Andrews Reckles and their firms, PEF Advisors LLC and PEF Advisors Ltd., were accused in October of defrauding investors and overvaluing the hedge fund they advised by hiding trouble assets in a medical staffing company.

The SEC claims they failed to disclose that the company, World Health Alternatives Inc., had defaulted on...
To view the full article, register now.