Outliers Identified in SEC’s ‘Aberrational Performance Inquiry’ Initiative Sued for Fraud

Yesterday, the SEC announced that it had brought enforcement actions against three advisory firms and six individuals for misconduct including improper use of fund assets, fraudulent valuations, and misrepresenting fund returns. Notably, the SEC stated that the cases were “part of an initiative to combat hedge fund fraud by identifying abnormal investment performance.”

Read more: Outliers Identified in SEC’s ‘Aberrational Performance Inquiry’ Initiative Sued for Fraud — Enforcement Action