Co-Founders of Hedge Fund, HMC International, To Pay More Than $4.5 Million In SEC Fraud Charges
The co-founders of HMC International LLC, Bret Grebow and Robert Massimi, have agreed to pay over $4.5 million to settle SEC fraud charges. They also agreed to a permanent injunction. They are now barred from associating with any investment advisers.
The Securities and Exchange Commission filed the action against the hedge fund owners in the U.S. District Court for the Southern District of New York. According to the SEC, the HMC allegedly used a day trading strategy to invest in stocks on the New York Stock Exchange and on NASDAQ. The SEC is also accusing Massimi, HMC’s CEO, of misrepresentation, both regarding the hedge fund’s risk level, strategy, and performance, as well as his degree of involvement in managing the hedge fund. The SEC also alleges that for the majority of the time that HMC was in operation, its principal was not invested to benefit its investors.
Grebow was HMC’s sole trader, and both he and Massimi are accused of preparing and sending out false statements that let investors believe their funds were garnering positive results. They also allegedly misappropriated the fund’s assets and engaged in fraud and deceit.
Massimi has agreed to pay $1,266,168 in disgorgement fees, a $120,000 civil penalty, and $69,984 in prejudgment interest. Grebow agreed to pay $517,595.77 in prejudgment interest, $2,467,472 in disgorgement, and $120,000 in civil penalty.
In agreeing to pay the fine, however, none of the defendants and respondents admitted or denied any wrongdoing. Also as part of the settlement, relief defendant Jaime Massimi agreed to give up a brokerage account that was wrongfully placed in her name.
At Shepherd, Smith, and Edwards, Our experienced team of attorneys is devoted to representing investors nationwide and helping them recover losses that were caused by the inappropriate actions of stockbrokers and their firms. We offer a free consultation if you contact us through the Internet. Contact Shepherd, Smith, and Edwards today.
Related Web Resources:
SEC Settles Action Against Hedge Fund, HMC International, LLC, and Its Principals, Robert M. Massimi and Bret A. Grebow, SEC.gov
Hedge Fund, Hedgefund.net
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