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Mar. 11, 2008

Manager of purported hedge fund makes unsuccessful motion to dismiss SEC charges of violations of federal securities laws based on “empty pockets” defense

  • HFLR Editor
    Hedge Fund Law Report
  • A manager of a purported hedge fund made a motion to dismiss the SEC’s claims of violations of the federal securities laws, arguing that even if the SEC won on the merits, it would not be able to collect anything from him, since British authorities had already seized his assets.
  • The SEC countered that the absence of assets would not bar enforcement of its equitable claims.
  • The court reluctantly (because the defendant offered to settle for an injunction and industry bar) refused to dismiss the SEC’s claims.

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