Hedge Fund Crook Defrauded Clients|Of Half A Billion, Judge Rules

MIAMI (CN) - Michael Lauer, of Greenwich, Conn., defrauded his hedge fund clients of $500 million, a federal judge ruled. Lauer's Lancer Management Group collected more than $1.1 billion from clients and lost half a billion of it through "egregious, pervasive, premeditated" fraud, U.S. District Judge Kenneth Marra ruled, in granting summary judgment to the SEC.

The SEC froze Lauer's and Lancer's assets in 2003, when it began its enforcement actions. The SEC seeks fines and more than $50 million in disgorgement.

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