Komfie Manalo, Opalesque Asia:
Charlotte, North Carolina-based hedge investment manager Lonny Scott Bernath ended up being charged with defrauding his investors in at the very least three hedge funds over years.
In a statement, the Securities and Exchange Commission said in its issue recorded in U.S. District legal when it comes to Western District of North Carolina, that between 2007 and 2011, Bernath directed three hedge funds handled by their financial investment advisory firm to make loans to and assets in illiquid property and business ventures which he additionally was able and in that he had really invested.
The complaint also states that Bernath misrepresented these investment tasks into the funds' people and couldn't disclose all of them until 2013. The problem further alleges that, from 2008 to 2011, Bernath periodically composed along the value of these assets and loans, toward detriment regarding the funds' investors.
Without admitting or denying the SEC's allegations, Bernath has consented to partly settle the situation against him. The settlement is pending last endorsement because of the courtroom. Especially, Bernath consented to your entry of your final wisdom purchasing an accounting and forever enjoining him from future violations. The right amount of disgorgement and municipal penalty, if any, would be determined by the courtroom at a later date upon movement by the SEC.