Tr?id=566623520170033&ev=PageView&noscript=1

SEC Charges Hedge Fund Portfolio Manager with Fraud

Posted on September 15th, 2022 at 2:55 PM
SEC Charges Hedge Fund Portfolio Manager with Fraud

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged an Oklahoma City-based hedge fund portfolio manager with defrauding investors by making unauthorized trades that caused the fund to lose at least $10 million.

The portfolio manager, Lee Bressler, worked for Carbon Master Fund between November 2016 and February 2018, according to the SEC. The SEC’s complaint alleges that Bressler falsely informed investors that the fund adhered to a conservative investment strategy that focused on capital preservation and risk mitigation. However, Bressler instead transacted several unauthorized high-risk trades in at least two undisclosed accounts that were margined against the fund’s assets, according to the SEC.

The SEC alleged that the unauthorized trades breached the fund’s stated investment mandate while exposing the fund’s assets to extreme volatility. Bressler’s unauthorized trades led to the complete loss of investor capital in the fund, which totaled more than $10 million. According to the SEC, Bressler was barred from the industry and has agreed to pay a civil penalty of $184,000.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, sec, law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

1793034027 Law
October 26, 2026
FINRA Bars Former Wedbush Broker Over $3.5 Million in Complex ETP Losses

The Financial Industry Regulatory Authority (FINRA) barred former Wedbush Securities broker William H.

1792610544 Law
October 21, 2026
FINRA Fines and Suspends Former LPL Broker Over Undisclosed Customer Settlement

The Financial Industry Regulatory Authority (FINRA) fined former LPL Financial broker Gregory W.

1792523173 Law
October 20, 2026
FINRA Orders American Portfolios to Pay $1.6 Million Over Unit Investment Trust Supervision Failures

The Financial Industry Regulatory Authority (FINRA) has ordered American Portfolios, the broker-dealer later absorbed into Osaic, to pay more than $1.6 million in restitution and fines over failures to supervise financial advisors who repeatedly recommended that customers sell unit investment trusts (UITs) before maturity.