SEC Accuses Calif. Hedge Fund Manager Of Trading Scheme

Law360, New York (December 14, 2012, 7:43 PM EST) -- The U.S. Securities and Exchange Commission on Friday accused a Santa Monica-based hedge fund manager and his bankrupt investment advisory firm of “cherry picking” winning trades for their own accounts and and favored clients, while sticking other unlucky clients with losing trades.

Aletheia Research and Management Inc., which filed for Chapter 11 protection in November, and its CEO, Peter Eichler Jr., allegedly allocated losing trades disproportionately to the accounts of two hedge funds managed by the firm, causing the funds’ investors to lose $4.4 million between...
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