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A federal judge in Miami has found that former hedge fund manager Michael Lauer defrauded investors out of more than $500 million between 1999 and 2002.
U.S. District Court Judge Kenneth A. Marra, in a 67-page order issued last week, found that Lauer manipulated the prices of seven securities that were a large part of the funds’ portfolios, but failed to provide any basis for the exorbitant valuations and lied to investors about the hedge funds actual holdings.
The judge said in his order that Lauer’s actions, as head of Lancer Management Group and Lancer Management Group II, were "egregious, pervasive, premeditated and resulted in the loss of hundreds of millions of dollars in investors’ funds."
Hartford Courant – Michael Lauer’s estate in the prestigious backcountry neighborhood of this wealthy town looks almost as troubled as the U.S. economy.
The grounds are overgrown with waist-high weeds. A pool cover is filled with filthy, stagnant water. Inside, paint is peeling around the soaring windows.
So when the house of the disgraced hedge fund manager goes up for foreclosure auction today by the Internal Revenue Service, bidders will have to look for its potential — and think about how much they will have to invest to make the 7,300-square-foot contemporary livable again.
Just like taxpayers and business managers eyeing the U.S. economy.
Forbes – A federal judge in Florida ruled Wednesday that the head of two hedge funds deceived investors about the funds’ holdings. Elsewhere, federal regulators accused a California investment adviser of making tainted recommendations to clients.
In the Florida case, U.S. District Judge Kenneth Marra ruled that Michael Lauer, the head of Connecticut-based hedge funds Lancer Management Group and Lancer Management Group II, engaged in a fraud that cost investors about $500 million, according to the Securities and Exchange Commission.
Marra granted the SEC’s request for summary judgment against Lauer, finding that he overstated the hedge funds’ values from 1999 to 2002, manipulated the prices of seven securities that were an important part of the portfolios, and deceived investors about the funds’ holdings by providing them with fake financial statements.
