{"id":3633,"date":"2016-08-17T00:00:00","date_gmt":"2016-08-17T05:00:00","guid":{"rendered":"https:\/\/stockbrokerfraudblog.blawgcloud.com\/2016\/08\/securities_fraud_news_hedge_fu"},"modified":"2016-08-17T00:00:00","modified_gmt":"2016-08-17T05:00:00","slug":"securities-fraud-news-hedge-fu","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-news-hedge-fu\/","title":{"rendered":"Securities Fraud News: Hedge Fund Manager Accused of Securities Fraud Involving Payoffs to the Terminally Ill, SEC Halts Trading in Neruomama Shares, and Commodity Pool Fraud Leads to More than $10M in Penalties and Restitution"},"content":{"rendered":"

Investment Advisor Firm Accused of Paying Off Terminally Ill Patients to Commit Fraud<\/strong>
\nThe SEC has filed fraud charges<\/a> against Donald Lathen and his Eden Arc Capital Management. Lathen is accused of recruiting at least 60 individuals who had less than six months to live and agreeing to pay them $10K each for the use of their names on joint brokerage accounts. When one of these individuals would die, he would allegedly redeem the investments by falsely representing that he and the terminally individual person were joint account holders. <\/p>\n

Lathen recruited the terminally ill patients through contacts he had at hospices and nursing homes. In reality, it was Lathen\u2019s hedge fund that owned the option investments. <\/p>\n

As a result, of the purported omissions and misrepresentations, issuers paid over $100M in early redemptions. Lathen is accused of violating the custody rule by not properly putting the securities and money from the hedge fund in an account under the name of the fund or in one that held only client money and securities. <\/p>\n

\nSEC Stops Trading in Neromamam Ltd. <\/strong>
\nThe SEC has stopped the trading of Neuromama Ltd. (NERO) shares. The shares trade on the mostly unregulated over-the-counter markets and the regulator is concerned about transactions that may be \u201cpotentially manipulative, as well as other red flags that have purportedly been cropping up for years. <\/p>\n

Neruomama\u2019s paper value went up times four to $35B this year despite not much volume. The company\u2019s shares went up by four times to $56\/share. (On January 15, \u201914, its value was $4.73B.)<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Investment Advisor Firm Accused of Paying Off Terminally Ill Patients to Commit Fraud The SEC has filed fraud charges against Donald Lathen and his Eden Arc Capital Management. Lathen is accused of recruiting at least 60 individuals who had less than six months to live and agreeing to pay them $10K each for the use […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3810,3989,3818,3752,3748,3781,3738,3801,3760,3741],"tags":[2843,3646],"class_list":["post-3633","post","type-post","status-publish","format-standard","hentry","category-cftc","category-commodity-options-fraud","category-deutsche-bank","category-financial-firms","category-hedge-funds","category-investment-advisers","category-investor-fraud","category-sec","category-sec-enforcement","category-securities-fraud","tag-commodity-pool-fraud","tag-neuromama"],"yoast_head":"\nSecurities Fraud News: Hedge Fund Manager Accused of Securities Fraud Involving Payoffs to the Terminally Ill, SEC Halts Trading in Neruomama Shares, 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