Corporate & Securities Law

SNSFE Investigating Massachusetts Hedge Fund River Stream And Its Manager Michael Regan

By James Eccleston

SNSFE is investigating a Massachusetts hedge fund manager.  Massachusetts' top securities regulator, William Galvin, on Monday charged a hedge fund manager, who had promised to earn as much as 20 percent for his clients, with improperly soliciting investors.

William Galvin, the state's secretary of the commonwealth, said that Michael Regan did not check whether investors in his River Stream fund were wealthy enough to be legally invested with him.

Galvin's office also found documents that suggests that most of the money clients entrusted to Regan may be lost.  Investigators found River Stream client data thrown into a dumpster near an empty office where Regan said he worked.

The money manager wooed friends and social contacts with false Ivy League credentials and promises of healthy returns between 10 percent and 20 percent a year.  He claimed to have an MBA in Finance from Columbia University which he did not earn, Galvin's office said.

Galvin's investigators also found a brokerage statement showing a River Stream fund had lost $1,625.00 at the end of April, a fraction of the $15 million Regan claimed to be managing earlier in the month.  One client said he put roughly $1.5 million with Regan in 1996.

Those who have information about this fund or this manager should contact attorneys at SNSFE.

Source: Reuters

Full post as published by FinancialCounsel on May 20, 2008 (boomark / email).