WEST PALM BEACH, FL (HEDGECO.NET) – The Beacon Hill Asset Management firm and its four principals have agreed to pay the Securities and Exchange Commission the sum of $4 million to settle pendingfraud allegation charges. The SEC alleged in a civil suit that Beacon Hill Asset Management firm and its four principals carried out a scheme involving misrepresentations in the value of its hedgefund management portfolios.
The four principals named in the suit were John Barry, Thomas Daniels, John Irwin and Mark Miszkiewicz. Part of the settlement forbids the named persons from working for any hedge fund or mutual fund company engaged in money management. One of the principals, Miszkiewicz, was however granted the option to reapply for such work after the end of the four year prohibition period.
The principals did not admit or deny any wrongdoing, in the case, however they agreed to pay a total of $4.4 million dollars, [$2 million in fines and another $2 million in restitution charges]. Such fines will be used to reimburse investors in the fund who were defrauded according to the charges.
The SEC said cases of fraud within the US hedge fund industry are on the rise. In the past five years the agency brought enforcement action against 40 hedge fund managers, these cases involve money losses by investors in such portfolios. There are estimated to be over 8000 hedge funds in the world, out of this number; an overwhelming 5,700 of them are based in the United States. Global hedge funds manage in excess of $1 trillion in overall investor assets.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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