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SEC Charges Hedge Fund Advisor Over Alleged $39 Million Fraud

Posted on June 9th, 2022 at 1:01 PM
SEC Charges Hedge Fund Advisor Over Alleged $39 Million Fraud

The Securities and Exchange Commission (SEC) has filed fraud charges against EIA All ÍøÆØ³Ô¹Ïather Alpha Fund I Partners LLC (EIA) and its owner, Andrew Middlebrooks, for allegedly operating a multi-year scheme that involved the misappropriation of investor funds. 

The SEC successfully halted the alleged scheme by obtaining a temporary restraining order (TRO) and an asset freeze against EIA and Middlebrooks. According to the SEC, EIA and Middlebrooks allegedly deceived hedge fund investors by repeatedly making false statements regarding fund performance, furnishing falsified client account statements, as well as designing and providing a fake audit opinion to investors. 

EIA and Middlebrooks also allegedly misappropriated client funds to make Ponzi-style payments to earlier investors as well as to purchase jewelry and cover credit card payments, according to the SEC. The SEC’s complaint seeks injunctions, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties against EIA and Middlebrooks. 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston law, sec, eia

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