Yesterday, Wayzata.com reported that the SEC had sued a former Wayzata based hedge fund run by John Lawton that had relocated to San Franciso. Today a number of news sources are reporting that the Judge involved in the case has halted the operations of Lawton and the fund, called Paramount Partners, and has ordered an accounting all the way back to 2001.
The fund has collected amounts totally about $16 million from 54 people--mostly based in Minnesota. Rumor has it the fund retains about $1.3 million left in assets.
Check out the full article here: Judge halts Lawton's operations
FIN Alternatives: Accused Hedge Fund Fraudster Hit With Asset Freeze