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Komfie Manalo, Opalesque Asia: Charlotte, North Carolina-based hedge fund manager Lonny Scott Bernath
was charged with defrauding his investors in at least three hedge funds
over several years.
In a statement, the Securities and Exchange Commission said
in its complaint filed in the U.S. District Court for the Western
District of North Carolina, that between 2007 and 2011, Bernath directed
three hedge funds managed by his investment advisory firm to make loans
to and investments in illiquid real estate and business ventures which
he also managed and in which he had personally invested.
The complaint also states that Bernath misrepresented these investment
activities to the funds' investors and did not disclose them until 2013.
The complaint further alleges that, from 2008 to 2011, Bernath
periodically wrote down the value of these investments and loans, to the
detriment of the funds' investors.
Without admitting or denying the SEC's allegations, Bernath has agreed
to partially settle the case against him. The settlement is pending
final approval by the court. Specifically, Bernath consented to the
entry of a final judgment ordering an accounting and permanently
enjoining him from future violations. The appropriate amount of
disgorgement and civil penalty, if any, will be determined by the court
at a later date upon motion by the SEC....................... To view our full article Click here
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