MA District Court Enters $2.91M Final Judgment Against UK Fund Manager for $ 34M Securities Fraud

Holding:

The U.S. District Court for District of Massachusetts has entered a final judgment on April 8, 2009 against defendant Glenn Manterfield, a citizen of the United Kingdom, in connection with a civil injunctive action filed in April 2007 by the Securities and Exchange Commission (“SEC”) against Manterfield, his business partner Evan K. Andersen, and Lydia Capital, LLC, a registered investment adviser based in Boston, Massachusetts. The judgment enjoined Manterfield, a principal of Lydia, from engaging in future violations of the antifraud provisions of the federal securities laws and holds him liable for $2,350,000 in disgorgement of profits from the conduct alleged in the SEC's complaint, plus prejudgment interest of $425,998, and a civil penalty in the amount of $130,000.

Detailed Summary:

The SEC originally filed its action against Manterfield on April 12, 2007 in the district court, and filed an amended complaint on May 1, 2007. The amended complaint alleged that from June 2006 through April 2007, Manterfield and his business partner Andersen, acting through Lydia, engaged in a scheme to defraud more than 60 investors, who invested approximately $34 million in Lydia Capital Alternative Investment Fund LP, a hedge fund managed by Lydia.

The amended complaint alleged that defendants told investors that they intended to use the hedge fund’s assets to acquire a portfolio of life insurance polices in the life…

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