Judge Keeps SEC Fraud Suit V. UK Fund Adviser Alive

Law360, New York (February 11, 2009, 12:00 AM EST) -- A federal judge has refused to toss a suit by the U.S. Securities and Exchange Commission against British hedge fund adviser Pentagon Capital Management PLC that alleges the company and its CEO defrauded U.S. investors through a scheme of late trading and deceptive market timing.

Judge Robert W. Sweet of the U.S. District Court for the Southern District of New York denied the defendants' motion to dismiss in an order Monday, saying the SEC's allegations of late trading and market timing had been sufficiently pled....
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