Fund Manager Denied Defense Costs For SEC Fraud Action

Law360, New York (February 15, 2012, 6:06 PM EST) -- The Pennsylvania federal judge who oversaw the U.S. Securities Exchange Commission's enforcement action against hedge fund manager Robert Berlacher denied Berlacher's motion for attorney's fees Wednesday, saying that although it did not prevail on all its claims, the SEC's lawsuit was substantially justified.

U.S. District Judge Mitchell Goldberg disagreed with Berlacher's argument that the SEC had made unreasonable demands that entitled the hedge fund manager to the costs of his defense under the Equal Access to Justice Act, which provides for the government to pay a...
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