Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Monday, May 5, 2008

SEC Gets Temporary Freeze of Plus Money and Advisor

The SEC filed an emergency action to halt an ongoing $30 million hedge fund fraud by an investment adviser located in San Diego. Named in the complaint are Plus Money, Inc. ("Plus Money") and Matthew La Madrid ("La Madrid"). The United States District Court for the Southern District of California issued an order on April 30 temporarily freezing the assets of the defendants and the relief defendants.

The Commission's complaint alleges that since at least May 2004, the defendants have managed hedge funds (the "Premium Return Funds") that raised more than $30 million from over 300 investors by telling them they would engage in a covered call options trading strategy. The complaint further alleges that, unbeknownst to investors, in the fall 2007 Plus Money and La Madrid abandoned the covered call trading strategy, emptied out the monies in the Premium Return Funds' brokerage accounts, and dissipated the money through a series of illicit transfers.

http://lawprofessors.typepad.com/securities/2008/05/sec-gets-tempor.html

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Comments

It took me awhile to take my hard earned money and invest in this. My so called brother fireman finally conveinced me that it wasn't a scam.I saw everyone else getting there checks as well. When I tried to get some money out in june of 2006 they(plus money) just blew me off. I had my doubts all along. And friends of mine that work in banks told me to get it out. Well, I learned the hard way. If people come up to you and offer you these deals of a lifetime. Don't fall for it. There cons. As soon as I didn't get that check by the 12th of feb.2008 I new I was robbed. Now I know that there are people like this that are your so called "friends" out there in this ugly world. I hope they have a nice time in prison.

Posted by: randy | May 14, 2008 10:08:36 AM

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