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SEC Hits Hedge Fund Bosses With Fraud Suit

Law360, New York (October 21, 2010, 12:15 PM EDT) -- The U.S. Securities and Exchange Commission has accused two hedge fund portfolio managers of fraudulently overvaluing so-called side pocket assets in a troubled medical staffing company and misappropriating $2 million in investor funds.

The regulator filed suit Tuesday against managers Paul T. Mannion Jr. and Andrews S. Reckles as well as their investment-adviser entities PEF Advisors LLC and PEF Advisors Ltd. in the U.S. District Court for the Northern District of Georgia.

According to the SEC, the pair caused investments made by the hedge fund they...
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