SAN DIEGO (HedgeWorld.com)–The Securities and Exchange Commission sued hedge fund operator Marvin I. Friedman of La Jolla, Calif., his hedge fund firm and the hedge fund he managed over alleged misstatements of assets under management.
Also named were his hedge fund firm Global Money Management LP, San Diego, and the hedge fund he managed, LF Global Investments LLC.
The SEC also alleges that he failed to tell investors he had been barred from associations with members of the National Association of Securities Dealers, Washington.
As a result of the suit, the SEC asked U.S. District Judge Barry T. Moskowitz, of the Southern District of California, to freeze the manager’s assets, which he did on March 11.
A statement from the SEC alleges that Mr. Friedman told investors that he manages US$60 million to more than US$100 million, though in reality he managed as little as US$11 million. The exact amount he managed is not known, according to the SEC statement.
The SEC’s complaint was made on the basis of allegations that the defendants violated federal anti-fraud securities laws.
Mr. Friedman could not be reached for comment.