MarketWatch – The Securities and Exchange Commission on Thursday charged a hedge fund manager with allegedly defrauding investors by hiding millions of dollars in losses from mortgage securities.
Specifically, the SEC alleges that Walter Morales and hedge fund Commonwealth Advisors, based in Baton Rouge, La., tried to hide $32 million in losses by lying to investors about the amount and value of mortgage-backed assets held by the hedge funds, and purportedly creating phony internal documents to justify their false valuations.
