SEC Stops Allegedly Fraudulent Hedge Fund Offering that Raised $39 Million (AI-CIO.com) The SEC has charged Florida-based investment adviser Kinetic Investment Group, and its manager Michael Scott Williams, in connection with an allegedly fraudulent unregistered securities offering that raised approximately $39 million from at least 30 investors to invest in a purported hedge fund. The regulator also obtained an asset freeze and other emergency relief against the company and Williams. According to the SEC’s complaint, since at least 2013, Williams and Kinetic fraudulently raised the $39 million by making material misrepresentations to investors whom they solicited to invest in a purported hedge fund called Kinetic Funds I LLC.
Congratulations to the SEC. They usually ignore frauds of under $200 million. These frauds usually include friends and family of the fraudsters.