SEC Says Chicago Investment Firm Lied About PE Fund

Law360, New York (November 29, 2012, 6:27 PM EST) -- The U.S. Securities and Exchange Commission on Thursday sued a Chicago-based investment firm alleging the firm illicitly raised $1.3 million by lying to investors about a failing private equity fund and used the investments to pay off other clients to whom it owed money.

The commission says Resources Planning Group Inc. and co-owner Joseph J. Hennessy lured investors to the Midwest Opportunity Fund, which Hennessy also owned, by misrepresenting it as a viable fund that offered high returns.

In fact, the fund was in poor financial...
To view the full article, register now.