SEC Says Portland Hedge Funds, Attys Ran $37M Ponzi Scheme

Law360, Los Angeles (September 20, 2012, 10:13 PM EDT) -- The U.S. Securities and Exchange Commission on Thursday accused the managers of two Portland, Ore.-based hedge funds and their attorneys of running a Ponzi scheme that defrauded investors out of more than $37 million.

Yusaf Jawed, the head of Grifphon Asset Management LLC and Grifphon Holdings LLC, is accused of touting to investors annual double-digit returns, but instead used that money for personal use and paying back earlier investors. Jawed, 44, provided investors with bogus documentation and accounting statements purporting to show increases in account value...
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