SEC Turns Up Heat On Hedge Fund Kickbacks

Law360, New York (December 10, 2007, 12:00 AM EST) -- The U.S. Securities and Exchange Commission and FBI's sting on hedge fund kickbacks has culminated in a flurry of fraud suits against public company promoters and insiders.

The five suits the commission filed on Friday accuses seven individuals and the firms three of them ran of paying illegal kickbacks to a purported hedge fund manager — actually an undercover FBI agent — as inducements for the funds to buy stock in the publicly traded companies they promoted.

One suit implicated promoters Vincent Cammarata and Rex Morden...
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