Hedge Fund Charged with Making Misleading Statements in Its Offering Documents

May 29, 2012

The SEC brought an administrative action against Gregory D. Tindall, alleging that Tindall was a managing member of Florida-based Arcanum Equity Fund, LLC (Arcanum) and of Vestium Management Group, LLC, which managed a second Florida-based hedge fund, Vestium Equity Fund, LLC. The SEC further alleges that Tindall selected or approved investments by the hedge funds that were inconsistent with the uses of proceeds specified in the funds’ offering materials. The SEC stated that Tindall was aware of or approved transfers of millions of dollars of investor funds to a Canadian corporation he controlled. In addition to deviating from the funds’ stated uses of proceeds, these transfers created an undisclosed conflict of interest between Tindall and the funds’ investors.
Click http://www.sec.gov/litigation/admin/2012/ia-3409.pdf to access the administrative action.


Investment Advisers, Investment Companies