SEC Sues Headstart Over Improper Trading

Law360, New York (April 10, 2008, 12:00 AM EDT) -- Headstart Advisers Ltd. is facing a securities suit alleging the U.K.-based hedge fund adviser manipulated U.S. mutual funds through late-trading and deceptive market-timing practices from 1998 to 2003.

The suit, filed on Thursday by the U.S. Securities and Exchange Commission, is the second one this week filed against a British hedge fund over deceptive practices that rocked the foundation of the U.S. mutual fund sector in 2003 and led the SEC to launch enforcement actions against U.S. funds and brokers.

The latest suit was filed in...
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