SEC Accuses Fund Manager, Brokerage CEO In $30M Fraud

Law360, Los Angeles (March 22, 2013, 5:34 PM EDT) -- A Houston-based hedge fund manager and radio talk show host was charged by the U.S. Securities and Exchange Commission with defrauding investors in two hedge funds that raised $30 million and steering bloated fees to a brokerage firm CEO, the agency announced Friday.

The administrative proceedings raise allegations that George R. Jarkesy Jr. and his firm, John Thomas Capital Management Group LLC, inflated valuations of the funds’ assets. Thomas Belesis, also charged in the SEC’s case, directed some investments from the hedge funds into a company...
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