SEC Busts Hedge Fund Manager

(CN) - The SEC charged Colorado investment adviser with defrauding his elderly clients by pushing his own companies' risky, ill-funded hedge funds, and taking millions of dollars in fees along the way. Neal Greenberg, 54, of Boulder, pushed his Agile hedge funds in the fraud, the SEC says.

"The Agile hedge funds held approximately $174 million of capital from more than 100 investors when Greenberg suspended redemptions in September 2008," the SEC said in announcing its cease and desist order against Greenberg.

"The Agile hedge funds remain frozen today, and investors likely have lost most, and possibly all, of their investment," the SEC said in its order.

"Greenberg was the CEO of his investment advisory firm, Tactical Allocation Services LLC, that made investment recommendations to clients, and the head portfolio manager for his other investment advisory firm Agile Group LLC, which managed the Agile hedge funds," the SEC said.

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