North County Times – An Encinitas investment manager is one of four men accused by the U.S. Securities and Exchange Commission of defrauding at least 70 investors of about $18 million. The SEC said the scheme was aimed at investors on fixed incomes.
Timothy J. Clyman, a financial planner and college-planning adviser, is alleged to have participated in the fraudulent offer and sale of securities from May 2004 until October 2005. The allegations are listed in a 16-page SEC complaint filed Thursday with the U.S. District Court in Topeka, Kan., where the men allegedly filed regulatory and sale-disclosure documents.
The SEC is asking the court to fine the men an undisclosed amount and freeze all remaining funds gained from the business practices.
Clyman, 51, who was a licensed securities broker until May 2004, didn’t return repeated requests for comment.
The SEC filing alleges that Clyman and the three others created a purported hedge fund called Seaforth Meridian Limited. A hedge fund is a private investment fund that trades and invests in variousassets, such as securities, commodities, currency and derivatives on behalf of its clients, typically wealthy individuals.
