SEC v. Global Money Management, L.P.; LF Global Investments, LLC; and Marvin I. Friedman, No. LR-18666, Southern District of California — Press Release
raw: Global Money Management, L.P., LF Global Investments, LLC, and Marvin I. Friedman
Global Money Management, L.P., LF Global Investments, LLC, and Marvin I. Friedman, No. LR-18666
Marvin I. Friedman, along with San Diego-based Global Money Management, L.P. and LF Global Investments, defrauded investors by inflating GMM’s assets from under $11 million to over $100 million while concealing his NASD bar and selling unregistered securities since 1993, leading to a court-ordered asset freeze, receiver appointment, and SEC charges for securities fraud.
The SEC charged Marvin I. Friedman, Global Money Management, L.P. (GMM), and LF Global Investments with orchestrating a multi-million dollar securities fraud by falsely claiming GMM held $60–$100 million in assets when brokerage records showed less than $11 million since December 2002. Friedman concealed his prior NASD bar and disciplinary history while promoting unregistered limited partnership interests since 1993, violating Sections 17(a) and 10(b) of the Securities Act and Exchange Act, Rule 10b-5, and the Investment Advisers Act. The court granted an emergency injunction, froze all defendants’ assets, prohibited document destruction, appointed Charles LaBella as permanent receiver, and the SEC seeks disgorgement, prejudgment interest, and civil penalties.
The SEC alleged that Marvin I. Friedman, along with his entities Global Money Management, L.P. (GMM) and LF Global Investments, LLC, committed a long-running securities fraud by grossly overstating GMM’s assets—telling investors the fund held between $60 million and over $100 million, while brokerage records confirmed the actual value was never more than $11 million since December 2002. Since 1993, the defendants sold unregistered limited partnership interests in GMM, a purported private hedge fund, to investors while concealing Friedman’s disciplinary history, including his permanent bar from association with any NASD member. Friedman falsely portrayed himself as an experienced and reputable investment manager, further misleading investors about the legitimacy and performance of the fund. In response, the U.S. District Court granted the SEC’s emergency motion for a preliminary injunction, froze all defendants’ assets, ordered the preservation of documents, and mandated Friedman to provide a full accounting. Charles LaBella was appointed as the permanent receiver to oversee GMM and LF Global, with investors directed to www.gmmreceiver.com for updates. The SEC charged the defendants with violations of Section 17(a) of the Securities Act, Section 10(b) and Rule 10b-5 of the Exchange Act, and Sections 206(1) and 206(2) of the Investment Advisers Act, with Friedman also accused of aiding and abetting those violations. The Commission is seeking permanent injunctions, disgorgement of all ill-gotten gains with prejudgment interest, and civil penalties against all defendants.
Extracted insights
- $100.00M $100 million $100M–$1B
- $60.00M $60 million $10M–$100M
- $11.00M $11 million $10M–$100M
- organization The Commission
- agency the securities and exchange commission
- The Securities and Exchange Commission announced the judge granted the Commission's motion for a preliminary injunction
- Honorable Barry T. Moskowitz granted the Commission's motion for a preliminary injunction
- The Commission filed its complaint on March 11
- The Commission named Global Money Management, L.P. (GMM) as an unregistered private hedge fund
- The Commission named LF Global Investments, LLC (LF Global) as an unregistered private hedge fund
The Securities and Exchange Commission today announced that the Honorable Barry T. Moskowitz, United States Judge for the Southern District of California, granted the Commission's motion for a preliminary injunction in its emergency action to halt an ongoing multi-million dollar securities fraud. The Commission filed its complaint on March 11, naming San Diego-based Global Money Management, L.P., (GMM) an unregistered private hedge fund, LF Global Investments, LLC (LF Global), which operated GMM, and Marvin I. Friedman, 65, of La Jolla, California, who controlled both entities. The Commission's complaint alleges that the defendants grossly overstated the assets of GMM to investors. In addition to issuing a preliminary injunction against GMM, LF Global, and Friedman, the court issued orders freezing the assets of the defendants, prohibiting the destruction of documents, and ordering an accounting from Friedman. The court also appointed Charles LaBella as the permanent receiver over GMM and LF Global. Investors may obtain information about the receivership at www.gmmreceiver.com or by calling 619-696-9200. The Commission's complaint alleges that since 1993, the defendants have sold, in an unregistered offering, limited partnership interests in GMM, a purported private hedge fund that invested in securities, such as stock and stock options. While the amount of money actually raised is not known, Friedman has told investors at various times over the last several months that the hedge fund held assets ranging from $60 million to over $100 million. GMM's brokerage records, however, show that, since at least December 2002, the securities it holds have been worth no more than $11 million. In addition, Friedman touted his investment experience but failed to inform investors about his disciplinary history, including that he has been barred from association with any member of the NASD. The Commission's complaint alleges that GMM, LF Global, and Friedman violated the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and, as to LF Global, Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, and, as to Friedman, that he aided and abetted those violations of the Advisers Act. In addition to the emergency relief described above, the Commission seeks, from each defendant, permanent injunctions, disgorgement with prejudgment interest, and a civil penalty.
The Securities and Exchange Commission today announced that the Honorable Barry T. Moskowitz, United States Judge for the Southern District of California, granted the Commission's motion for a preliminary injunction in its emergency action to halt an ongoing multi-million dollar securities fraud. The Commission filed its complaint on March 11, naming San Diego-based Global Money Management, L.P., (GMM) an unregistered private hedge fund, LF Global Investments, LLC (LF Global), which operated GMM, and Marvin I. Friedman, 65, of La Jolla, California, who controlled both entities. The Commission's complaint alleges that the defendants grossly overstated the assets of GMM to investors. In addition to issuing a preliminary injunction against GMM, LF Global, and Friedman, the court issued orders freezing the assets of the defendants, prohibiting the destruction of documents, and ordering an accounting from Friedman. The court also appointed Charles LaBella as the permanent receiver over GMM and LF Global. Investors may obtain information about the receivership at www.gmmreceiver.com or by calling 619-696-9200. The Commission's complaint alleges that since 1993, the defendants have sold, in an unregistered offering, limited partnership interests in GMM, a purported private hedge fund that invested in securities, such as stock and stock options. While the amount of money actually raised is not known, Friedman has told investors at various times over the last several months that the hedge fund held assets ranging from $60 million to over $100 million. GMM's brokerage records, however, show that, since at least December 2002, the securities it holds have been worth no more than $11 million. In addition, Friedman touted his investment experience but failed to inform investors about his disciplinary history, including that he has been barred from association with any member of the NASD. The Commission's complaint alleges that GMM, LF Global, and Friedman violated the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and, as to LF Global, Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, and, as to Friedman, that he aided and abetted those violations of the Advisers Act. In addition to the emergency relief described above, the Commission seeks, from each defendant, permanent injunctions, disgorgement with prejudgment interest, and a civil penalty.