Fake Mutual Fund Siphoned Money From 20 Investors, SEC Alleges

Individuals using false names and addresses set up three fictitious companies and a nonexistent mutual fund boasting a 47% annual return and successfully lured at least 20 victims to invest a cumulative $2.6 million that’s now overseas, the SEC says.

The defunct companies should be forced to disgorge their ill-gotten gains and pay civil penalties for violating securities laws, the Securities and Exchange Commission said Thursday in its lawsuit filed in the US District Court for the Southern District of Florida.

Archer Capital Management Group, HDR Management LLC, and Silvermoon Group LLC operated the scam, including a purported private equity ...