SEC charges firm, hedge fund managers with 60-mln-dlr fraud

[UpInArms]

Source: AFP

WASHINGTON (AFP) - The US Securities and Exchange Commission said Tuesday it has filed civil fraud charges against a financial consulting firm and three of its managers for running an investment scheme that resulted in the loss of 60 million dollars.

The SEC's charges target the Salt Lake City, Utah-based Thompson Consulting Inc., an investment firm that also operated at least two hedge funds, and three hedge fund managers.

The managers, identified as Kyle Thompson, David Condie and Sherman Warner, allegedly used clients' funds to engage in riskier trades than they had marketed to their investors.

<snip>

The SEC said that as a result the hedge funds run by Thompson Consulting saw their value plummet from 54 million dollars to just 200,000 dollars between July 31 and August 17.

The investment managers had also allegedly racked up other losses tied to the stock of New Century Financial Corp., a lender of subprime, or high-risk, mortgages, after misrepresenting their strategies to clients.

Read more: http://news.yahoo.com/s/afp/20080304/bs_afp/usregulatefinanceinvestmentfraud

[Mountainman]

1. "54 million dollars to just 200,000 "

What did they invest in soap bubbles?

[NYC]

2. In 2 1/2 weeks.

Amazing.

[elehhhhna]

3. LOL, betcha it's stolen & stashed Offshore:

http://www.google.com/search?hl=en&q=%22Thompson+Consulting%22+Cayman+%22Salt+lake%22

[truthisfreedom]

4. Perfect candidates for bush's cabinet.

They already have their losing skills mastered. Think of what they could do with our tax dollars?

[truthisfreedom]

5. drat, self-edit

[brentspeak]

6. Not defending Thompson Consulting, but you won't see the SEC charge the BIG firms

like Goldman Sachs and Morgan Stanley with anything major. And when it does, it's always a slap on the wrist (make billions, pay millions).

[UpInArms]

7. that's because they only turned $65 B into $6 m

for those "wealthy" investors!

:hi: