SEC charges Mass. hedge fund manager with fraud

Stock Market News and Investment Information | Reuters.com

"BOSTON, Nov 9 (Reuters) - A Massachusetts hedge fund manager, who forged documents to cover up heavy losses and fabricated an accounting firm, was charged with fraud, the U.S. Securities and Exchange Commission said on Wednesday.

Financial regulators said Mark Conway, 44, hid millions of dollars in losses from friends and family members who invested in Groundswell Partners, his five-year-old hedge fund located in Waltham, a suburb near Boston.

Conway promised to make money by using complicated mathematical formulas to trade stocks.

Instead he altered fund-related documents and inflated the size of his fund, telling investors the fund had $43 million while it only had $14 million..."