{"id":6096,"date":"2017-01-09T19:03:43","date_gmt":"2017-01-10T01:03:43","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1347"},"modified":"2022-03-22T15:06:19","modified_gmt":"2022-03-22T20:06:19","slug":"hedge-fund-fraud-sec-partially-overturns-ruling-investment-adviser-raises-amount-owes-jury-selection-begins-former-visium-fund-managers-bond-fraud-case","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-fraud-sec-partially-overturns-ruling-investment-adviser-raises-amount-owes-jury-selection-begins-former-visium-fund-managers-bond-fraud-case\/","title":{"rendered":"Hedge Fund Fraud: SEC Partially Overturns Ruling Against Investment Adviser But Raises Amount He Owes &#038; Jury Selection Begins in Former Visium Fund Manager\u2019s Bond Fraud Case"},"content":{"rendered":"<p>\t\t\t\t<strong>Ex-Visium Fund Manager on Trial for Bond Fraud <\/strong><br \/>\nJury selection is scheduled to begin this week in the criminal trial against Stefan Lumiere, an ex-Visium Asset Management LP portfolio manager. Lumiere, who managed the Visium Credit Opportunities Fund, is accused of falsely inflating the value of securities in a fund and committing <a href=\"https:\/\/www.securities-fraud-attorneys.com\">bond fraud<\/a>.<\/p>\n<p>Visium Asset Management LP is a New York based-hedge fund. The $8B investment hedge fund shut down in 2016 after a criminal investigation that led to charges against a number of people, including Sanjay Valvani, who \u00a0killed himself several months ago following allegations of insider trading.<\/p>\n<p>According to prosecutors, from \u201911 to \u201913, Lumiere was among a number of people who conspired to bilk investors through the mismarking of securities\u2019 values that were in a fund that invested in healthcare company-issued debt. The prosecution believes that the alleged misconduct caused the net asset value of the fund to be overstated by tens of millions of dollars monthly. Meantime, investors were fooled into thinking the bonds were very liquid even though they were illiquid.<\/p>\n<p>Lumiere pleaded not guilty to securities fraud, conspiracy, and wire fraud charges last year.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-fraud-sec-partially-overturns-ruling-investment-adviser-raises-amount-owes-jury-selection-begins-former-visium-fund-managers-bond-fraud-case\/#more-6096\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ex-Visium Fund Manager on Trial for Bond Fraud Jury selection is scheduled to begin this week in the criminal trial against Stefan Lumiere, an ex-Visium Asset Management LP portfolio manager. Lumiere, who managed the Visium Credit Opportunities Fund, is accused of falsely inflating the value of securities in a fund and committing bond fraud. Visium [&hellip;]<\/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":[3742,3748,3781,3760,3761],"tags":[2699,2700,2701,2702,2694],"class_list":["post-6096","post","type-post","status-publish","format-standard","hentry","category-collateralized-debt-obligation","category-hedge-funds","category-investment-advisers","category-sec-enforcement","category-securities-and-exchange-commis","tag-harding-advisory","tag-magnetar-capital","tag-norma-cdo-i","tag-octans-i-cdo","tag-visium-asset-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hedge Fund Fraud: SEC Partially Overturns Ruling Against Investment Adviser But Raises Amount He Owes &amp; Jury Selection Begins in Former Visium Fund Manager\u2019s Bond Fraud Case &#8212; Investor Lawyers Blog &#8212; January 9, 2017<\/title>\n<meta name=\"description\" content=\"Ex-Visium Fund Manager on Trial for Bond Fraud Jury selection is scheduled to begin this week in the criminal trial against Stefan Lumiere, an ex-Visium &#8212; January 9, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-fraud-sec-partially-overturns-ruling-investment-adviser-raises-amount-owes-jury-selection-begins-former-visium-fund-managers-bond-fraud-case\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Hedge Fund Fraud: SEC Partially Overturns Ruling Against Investment Adviser But Raises Amount He Owes &amp; Jury Selection Begins in Former Visium Fund Manager\u2019s Bond Fraud Case &#8212; Investor Lawyers Blog &#8212; January 9, 2017\" \/>\n<meta name=\"twitter:description\" content=\"Ex-Visium Fund Manager on Trial for Bond Fraud Jury selection is scheduled to begin this week in the criminal trial against Stefan Lumiere, an ex-Visium &#8212; January 9, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Hedge Fund Fraud: SEC Partially Overturns Ruling Against Investment Adviser But Raises Amount He Owes & Jury Selection Begins in Former Visium Fund Manager\u2019s Bond Fraud Case &#8212; Investor Lawyers Blog &#8212; January 9, 2017","description":"Ex-Visium Fund Manager on Trial for Bond Fraud Jury selection is scheduled to begin this week in the criminal trial against Stefan Lumiere, an ex-Visium &#8212; January 9, 2017","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-fraud-sec-partially-overturns-ruling-investment-adviser-raises-amount-owes-jury-selection-begins-former-visium-fund-managers-bond-fraud-case\/","twitter_card":"summary_large_image","twitter_title":"Hedge Fund Fraud: SEC Partially Overturns Ruling Against Investment Adviser But Raises Amount He Owes & Jury Selection Begins in Former Visium Fund Manager\u2019s Bond Fraud Case &#8212; Investor Lawyers Blog &#8212; January 9, 2017","twitter_description":"Ex-Visium Fund Manager on Trial for Bond Fraud Jury selection is scheduled to begin this week in the criminal trial against Stefan Lumiere, an ex-Visium &#8212; January 9, 2017","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-fraud-sec-partially-overturns-ruling-investment-adviser-raises-amount-owes-jury-selection-begins-former-visium-fund-managers-bond-fraud-case\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-fraud-sec-partially-overturns-ruling-investment-adviser-raises-amount-owes-jury-selection-begins-former-visium-fund-managers-bond-fraud-case\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Hedge Fund Fraud: SEC Partially Overturns Ruling Against Investment Adviser But Raises Amount He Owes &#038; 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