The regulator has contacted investors in the hedge fund in recent months as part of an investigation into what Melvin founder Gabriel Plotkin and other senior executives told them following the meme-stock rally in January 2021 and whether it misled investors when it raised money last year.
The SEC has obtained from Melvin its general communications with investors and has sought information about what the firm disclosed about the risks of its investment strategy to clients, the people said. Melvin is in the process of winding down after Mr. Plotkin surprised investors in May by telling them he would return their money.
‘Enforcement 40’ for 2020
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