The SEC recently brought and settled an action against a former wannabe fund manager, who lied to prospective investors that he already had raised millions of dollars in the fund from other (fictitious) investors.  The fund manager was barred from the securities industry for 10 years.  See  https://www.sec.gov/litigation/litreleases/2020/lr24783.htm.

The SEC also claimed that the fund manager used various social media when discussing this investment, The fund manager was also alleged to have mislead investors regarding the underlying investments and returns as well.  It would appear that the fund manager was not successful in obtaining any actual funds, however.

Although lying to investors will always get you into trouble, this case is really a lesson for all those seeking entry into the hedge/private equity fund business.  The lesson is you simply cannot make up your support or past, and how critical is to retain competent counsel to assist you in the endeavor.