|
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 21697 / October 18, 2010Securities and Exchange Commission v. Thomas J. Petters, Gregory M. Bell and Lancelot Investment Management LLC, Defendants, and Inna Goldman, Inna Goldman Revocable Trust, Asia Trust Ltd., Blue Sky Trust, and Gregory Bell Revocable Trust, Relief Defendants, Civil Action No. 09 SC 1750 ADM/JSM (D. Minn.)The Securities and Exchange Commission announced that on October 5, 2010, the Hon. Ann D. Montgomery entered by consent a Partial Final Judgment as to hedge fund manager Gregory Bell and his firm Lancelot Investment Management, LLC, permanently enjoining them from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and Sections 206(1), (2) and (4) of the Investment Advisers Act of 1940 and Rule 206-4(8) thereunder. Previously, in July 2009, the SEC filed an emergency action against Bell and his firm Lancelot Investment Management, LLC that charged them with misleading investors into investing more than $2 billion in hedge fund assets with Petters while pocketing millions of dollars in fraudulent fees at the expense of investors in the funds. The SEC obtained an asset freeze and other emergency relief against Bell and his firm and repatriated $15 million of investors' money from Switzerland that Bell had misappropriated and placed in a Cook Islands Trust. In addition, as a result of a separate action by the United States Attorney, District of Minnesota, on September 30, 2010 Gregory Bell, was sentenced to 72 months in prison, with credit for the 14 months he had served since his arrest in July 2009. U.S.A. v. Bell, 09-cr-00269. The SEC's investigation is continuing.
|
