SEC Accuses 2 Hedge Funds Of Ripping Off Investors

Law360, New York (October 3, 2012, 8:52 PM EDT) -- The U.S. Securities and Exchange Commission on Wednesday separately accused hedge funds GEI Financial Services Inc. and Lion Capital Management LLC, as well as their managers, of lying about how they handled hundreds of thousands of dollars in investments.

Lion Capital and its operator Hausmann-Alain Banet stole more than $500,000 from a retired schoolteacher and Norman Goldstein and Laurie Gatherum used GEI Financial to siphon at least $147,000 from a subsidiary hedge fund they managed, according to the SEC.

“These hedge fund frauds have lured even...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.