SEC Claims Firm Diverted More Than $9M From Funds

Law360, New York (March 9, 2006, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has accused the venture capital firm Keystone Venture Management Holdings Inc. of scheming to misappropriate more than $9 million in funds, the majority of which were public pension funds.

Three defendants, including two directors and one former director of the firm, have agreed to settle the lawsuit, with one other defendant still in the middle of court proceedings.

The SEC claimed Keystone Venture Management permitted businessman Michael A. Liberty to divert investment assets to himself and associates. Former Keystone director...
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