SEC Charges Fund Manager Jason Konior and His Firms with Operating a Pyramid Scheme Using a Purported “First Loss” Trading Program

On May 24, 2012, the SEC brought charges in Manhattan federal court against New York-based hedge fund manager Jason J. Konior and his firms, Absolute Fund Advisors, LLC and Absolute Fund Management, LLC, alleging that the defendants violated federal securities laws by operating a pyramid scheme disguised as a “first loss” trading program.  This article summarizes the factual background and causes of action contained in the complaint.

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