SEC Obtains Injunction Against Hedge Fund Manager

A federal district court in Massachusetts entered a Final Judgment by consent on September 16, 2008 against defendant Evan K. Andersen in connection with a civil injunctive action filed in April 2007 by the SEC against Andersen, his business partner, and Lydia Capital, LLC, a registered investment adviser. The SEC's complaint alleged that from June 2006 through April 2007, Andersen and his business partner, Glenn Manterfield, acting through Lydia, engaged in a scheme to defraud more than 60 investors who invested approximately $34 million in Lydia Capital Alternative Investment Fund LP, a hedge fund managed by Lydia.The Final Judgment enjoined Andersen, a principal of Lydia, from engaging in future violations of the antifraud provisions of the federal securities laws and holds him liable for $2,350,000 in disgorgement of profits from the conduct alleged in the Commission’s complaint, plus prejudgment interest of $177,089, but waived all except $1.8 million of the disgorgement and prejudgment interest, and did not impose a civil penalty, based on Andersen’s financial condition.