SEC Charges Hedge Fund Manager with Fabricating Auditor
The SEC has commenced litigation against a hedge fund manager that it alleges distributed a fictitious audit report that misrepresented the fund’s financial condition. In its complaint, the SEC offers evidence that the audit firm that issued the report is a sham entity formed and controlled by the fund manager. Also, the report itself overstated the fund’s assets and income. Total assets in the fund were approximately $4.5 Million.