New York (HedgeCo.Net) – The SEC yesterday charged $1billion hedge fund Yorkville Advisors LLC., its founder and president, Mark Angelo, and its chief financial officer, Edward Schinik with exaggerating returns in order to hide losses.
The SEC alleges in a 35-page complaint filed in Manhattan that the hedge fund mangers gained more than $280 million in investments from pension funds and other investors and enabled it to charge at least $10 million in excess fees.
“The SEC claims that Yorkville did not adhere to its own stated valuation policies and ignored negative information about certain investments by the funds. Yorkville also withheld adverse information about fund investments from Yorkville’s auditor, which allowed Yorkville to carry some of its largest investments at inflated values, the SEC says.” Forbes reports.
The hedge fund put out a statement attacking both the S.E.C.’s case and its tactics, calling the efforts a “free money shakedown.”
“Yorkville Advisors is deeply disappointed that the SEC has elected to file this litigation,” the firm said in a statement. “Yorkville vigorously disputes all of the allegations contained in the SEC’s complaint as they lack merit and are entirely without support.”
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