The United States Supreme Court refused to review a federal appeals court ruling approving a $62 million award against a former hedge fund manager, who defrauded hedge fund investors over several years. See Lauer v. SEC., U.S., No. 12-260, 10/29/12, and http://www.supremecourt.gov/orders/courtorders/102912zor_3f14.pdf.
This was an appeal from the United States Court of Appeals for the Eleventh Circuit that agreed with a federal district court’s granting of the SEC’s motion for summary judgment on liability and remedies. The SEC had alleged that the hedge fund manager had misrepresented the true value of the hedge funds, artificially inflating the value of holdings. Further, the SEC claimed he made false statements in various written and oral communications. Previously, the district court had frozen the hedge fund managers assets. The big judgment followed thereafter.
In short, both the United States Supreme Court and the Court of Appeals found there was sufficient evidence to support this judgment.