SEC Claims Hedge Fund Misled Investors

Law360, New York (March 30, 2006, 12:00 AM EST) -- Managers of Global Crown Capital LLC fraudulently concealed double-digit trading losses of its hedge fund Cogent Capital Management from its investors, alleged the U.S. Securities and Exchange Commission in proceedings on Thursday.

The SEC claimed Rani Jarkas and Antoine Chaya, principals of San Francisco-based Global Crown, sent false account statements to its Cogent hedge fund investors which inflated the fund’s success.

Three months after its inception in 2003, Cogent, a securities broker and investment adviser, began to experience trading losses of more than 20%, but the...
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