SEC Hits U.K. Hedge Fund With Market Timing Suit

Law360 (April 3, 2008, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission has filed suit against British hedge fund adviser Pentagon Capital Management Plc, claiming the company and its chief executive officer defrauded U.S. investors through a scheme of late trading and deceptive market timing.

The SEC’s complaint, filed Thursday in the U.S. District Court for the Southern District of New York, named Pentagon Capital, its CEO Lewis Chester and a hedge fund controlled by the firm, Pentagon Special Purpose Fund Ltd., as defendants, alleging that Chester and the Pentagon Capital “orchestrated...
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