SEC Charges Hedge Fund With Overstating Assets

Law360, New York (February 19, 2009, 12:00 AM EST) -- The U.S. Securities and Exchange Commission filed a lawsuit Wednesday against hedge fund Paramount Partners LP, alleging that it overstated its assets to investors and its general partner steered investor money into personal accounts.

John W. Lawton; his hedge fund, Paramount Partners; and Crossroad Capital Management LLC, Paramount's general partner, as recently as this month told investors that Paramount had approximately $17 million under management, according to a complaint filed in U.S. District Court for the District of Minnesota.

In reality, four investment banks that housed...
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