 |
|||||
 |
 |
 |
 |
 |
 |
June 1, 2001 An adviser to a hedge fund was charged by the SEC with fraudelently pumping up the value of the assets of a hedge fund. Portfolio pumping involves purchasing additioanl shares of a security already owned in an effort to temporarily cause the price of the security to rise. In this case, the SEC alleges that the adviser purchased large amounts of eNote.com stock and warrants at the end of each month over a period of time in order to increase the price of the security on the day it is valued. A significant portion of the hedge fund's portfolio was invested in eNote.com stock. This had the effect of artificially increasing the performance of the hedge fund over the time period. See http://www.sec.gov/litigation/litreleases/lr17021.htm to access the SEC release describing the administrative action. |
FORMS | LAWS & RULES | VENDOR LINKS | GOVERNMENT LINKS | OTHER LINKS