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Lauer Fined More Than $62 Million in Hedge-Fund Fraud Case
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(May 11, 2009 - Monday) - http://online.wsj.com/article/SB124180064400301321.html
By BRIAN KALISH
Michael Lauer, the head of Lancer Management Group and Lancer Management Group II, has been fined more than $62 million in a fraud case, the U.S. Securities and Exchange Commission said Friday.
Mr. Lauer, the head of the Connecticut-based funds, was ordered to pay the fines after being found liable on SEC fraud charges last fall, according to an agency press release. The fine includes $43.6 million of ill-gotten gains, and more than $18.9 million in prejudgment interest.
The SEC said Mr. Lauer may face an additional penalty. The judge in the case has given the SEC 30 days to recommend such penalty.
Mr. Lauer has been criminally charged in the matter as well, and his trial is scheduled for next March.
The SEC said Mr. Lauer raised more than $1.1 billion from investors over several years by misrepresenting the nature of and returns on his investments, and caused investors to lose about $500 million of that amount.
On April 28, Eric Hauser, the former head securities trader for the Lancer group, pleaded guilty to one count of conspiracy to commit mail, wire and securities fraud, according to a U.S. Justice Department press release.
Mr. Hauser was charged in an indictment with Mr. Lauer and three other men connected to the funds. The trial, on the same charges, is pending for all four.
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