WASHINGTON (HedgeWorld.com)–The U.S. Securities and Exchange Commission has shut down Ft. Myers, Fla.-based hedge fund KS Advisors Inc. due to alleged fraudulent actions.
KS Advisors and its principals, Scott Fine and Kevin Boyle, are being sued by the government agency after raising US$10 million from 100 investors worldwide in two hedge funds. According to the SEC, the investments in those funds have lost millions of dollars for investors.
On Feb. 27, a U.S. district judge for the Middle District of Florida issued various emergency orders against the defendants, including temporary restraining orders and asset freezes against KS Advisors, Condor II and Damian Partners. The orders also appointed a receiver of the assets and other emergency relief for investors.
The SEC’s case against the hedge fund firm and its principals rests on false representations that Messrs. Fine and Boyle made to investors about ever-increasing profits and net asset values of Condor II and Damian Partners. The complaint charges that both men collected fraudulent fund performance fees and undisclosed advisory fees based on false fund performance reports.