Komfie Manalo, Opalesque Asia: A federal judge has appointed a receiver to take over the hedge fund of Jacob Keith Cooper after he was found to have used investors money to pay a fine for fraudulent activities, reports said.
Cooper, from Washington, southern Utah, owns Total Wealth Management, a hedge fund that he operates in San Diego. The Securities and Exchange Commission (SEC) also accused him of inflating the fees to client accounts to pay for his legal and other expenses without telling his investors.
The SEC said Cooper allegedly tried to use $150,000 of his clients’ money to pay a fine imposed against him in a SEC administrative action in 2014. Total Wealth and its pooled investment funds have about $108m in assets under management and 773 client accounts.
In April last year, the SEC charged Cooper, company president Nathan McNamee of Hurricane and a California resident, David Shoemaker of San Diego, of violating federal laws by using unregistered investment funds, failing to engage independent auditors and for not conducting due diligence before investing their clients’ monies.
"Cooper has an inherent conflict of interest since he is using investors' money to defend himself in a lawsuit brought against him by his investors," the SEC complaint said....................... To view our full article Click here
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