Wednesday, August 29, 2012

RockStar Wannabee Turned-Hedge Fund Manager Settles Fraud Suit


According to finalternatives a California hedge fund manager has settled allegations that he misled investors in his funds. Gary Marks, without admitting or denying wrongdoing, agreed to pay more than $421,000 in disgorgement and fines to end the Securities and Exchange Commission's case against him. The regulator has accused the Sky Bell Asset Management chief of negligently misrepresenting the correlation and diversification among the firm's hedge funds, among other improper actions between 2005 and 2008.

According to the SEC, Marks recommended investors put most of their money into Sky Bell hedge funds while failing to disclose that one was significantly investing in a subadvisor's fund and making misleading statements about liquidity problems in another fund.

In addition to running Sky Bell, which had offices in Florida and Hawaii, Marks is also a rock musician and the co-author of a 2007 investment guide, Rocking Wall Street….

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