On March 18, 2009, the SEC commenced an action in the United States District Court for the Northern District of California against hedge fund manager Albert K. Hu, accusing him of misappropriating investor funds.  The SEC charged Hu and the entities he controls with violations of the antifraud provisions of federal securities laws.  The SEC also charged Hu individually with securities laws violations.  The SEC seeks emergency and interim relief, a final judgment permanently enjoining defendants from future violations of the antifraud provisions of the federal securities laws and an order to pay financial penalties and to disgorge ill-gotten gains.  We detail the factual allegations and legal theories advanced by the SEC.