Sanctions Upheld Against Fla. Hedge Fund

Law360, New York (June 1, 2009, 12:00 AM EDT) -- A Florida hedge fund found to have sold investors $10 million in unregistered securities has lost a judicial challenge to a cease-and-desist order issued last year by the Colorado Securities Commission.

The Colorado Court of Appeals ruled Thursday that while the commission had no evidence to support the finding that Black Diamond Fund LLLP had sold securities “in a fraudulent manner,” the bulk of the agency's findings were sound, and the sanctions fair.

BDF and its general partner Wealth Strategy Partners brought the appeal after the...
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