A number of sources are reporting that the Securities and Exchange Commission is suing a former Wayzata located hedge fund that has moved to San Francisco. Here is an excerpt from a Star Tribune article: The SEC alleges that former Minneapolis resident John Lawton misled investors about the successes of the fund, Paramount Partners, and overstated its balance sheet to hide some losses.
Apparently Lawton and the hedge fund moved to San Francisco about a year ago. He has to respond to a US Federal court by noon today via a temporary restraining order.
To read the full story, follow these links:
- Star Tribune: SEC sues former Wayzata hedge fund
- FIN Alternatives: SEC Sues Hedge Fund Manager For $16 Million Fraud
- The Jamestown Sun: SEC sues former Wayzata-based hedge fund