|
|
In the week ending September 27th 2024, the SEC issued a cease-and-desist order against Evan H. Katz, co-founder of Crawford Ventures Absolute Return Fund, LP, for misrepresentations in fund documents that raised over $16 million from 45 investors. Ironically, Katz's LinkedIn profile describes him as an "Award-Winning Hedge Fund & Private Equity Executive/Fundraiser," claiming he was "Voted/Nominated the Hedge Fund Industry's Best Fundraiser (Hedgeweek Awards 2021-2023)" and served as a "Director, Hedge Fund Association Board of Directors (2014-2019)."
The fund claimed to mirror a successful strategy by principals Akshay and Dev Kamboj, however forged audit documents were provided to investors. Katz failed to verify these documents and the Kamboj brothers' track record, and so unverified data was used to obtain marketing accolades. According to the SEC, by December 2023, the fund planned to liquidate due to losses while Katz promoted the fund as "10-time award-winning and globally #1 ranked top-performing hedge fund".
Katz violated Sections 17(a)(2) and 17(a)(3) of the Securities Act. He agreed to cease violations and pay $202,483.77 in disgorgement, interest, and penalties. Separately, the SEC charged Akshay and Dev Kamboj with fraud for using fake performance history. They allegedly created fictitious audit reports and impersonated an auditor via email.
This case emphasizes the need for thorough due diligence in fund marketing and operations, even wh...................... To view our full article Click here
|
|
RSS
